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Capital Structure And Dynamic Performance: Evidence From Asean-5 Banks

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  • MOHAMMAD NOURANI

    (Department of Economics, Faculty of Economics and Administration, University of Malaya, Jalan Universiti, 50603 Kuala Lumpur, Malaysia)

  • IRENE WEI KIONG TING

    (Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuhraya Tun Razak, 26600 Gambang, Kuantan Pahang, Malaysia)

  • WEN-MIN LU

    (Department of Financial Management, National Defense University, No. 70, Sec. 2, Zhongyang North Rd. Beitou, Taipei 112, Taiwan)

  • QIAN LONG KWEH

    (Faculty of Management, Canadian University Dubai, P. O. Box 117781, 1st Interchange, Sheikh Zayed Road, Dubai, United Arab Emirates)

Abstract

In today’s dynamic economy, banks should focus on improving their dynamic performance to stay competitive. Using a dataset for the period 2007–2013, this paper evaluates the dynamic performance of ASEAN-5 banks through a data envelopment analysis (DEA) model, called the dynamic slacks-based measure (DSBM) model. The DEA results indicate that banks in Malaysia perform better than those in Singapore, Thailand, Indonesia and the Philippines. Frontier projections through DEA indicate that banks in the ASEAN-5 countries underutilize their long-term assets, resulting in inefficiencies. Furthermore, this study finds that capital structure as a whole is positively related to bank performance.

Suggested Citation

  • Mohammad Nourani & Irene Wei Kiong Ting & Wen-Min Lu & Qian Long Kweh, 2019. "Capital Structure And Dynamic Performance: Evidence From Asean-5 Banks," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(03), pages 495-516, June.
    • Handle: RePEc:wsi:serxxx:v:64:y:2019:i:03:n:s021759081650034x
    DOI: 10.1142/S021759081650034X
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    3. Mohammad Nourani & Wen‐Min Lu & Irene Wei Kiong Ting, 2020. "Vicarious warfare and dynamic efficiency of companies in the aerospace and defence industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 641-650, June.

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