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Ownership Structure and Bank Efficiency in Six Asian Countries

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Listed:
  • Thierno Amadou Barry

    (LAPE - Laboratoire d'Analyse et de Prospective Economique - GIO - Gouvernance des Institutions et des Organisations - UNILIM - Université de Limoges)

  • Santos José O. Dacanay

    (Institute of management - UP System - University of the Philippines)

  • Laetitia Lepetit

    (LAPE - Laboratoire d'Analyse et de Prospective Economique - GIO - Gouvernance des Institutions et des Organisations - UNILIM - Université de Limoges)

  • Amine Tarazi

    (LAPE - Laboratoire d'Analyse et de Prospective Economique - GIO - Gouvernance des Institutions et des Organisations - UNILIM - Université de Limoges)

Abstract

This paper focuses on efficiency measures of banks from six countries in Southeast and East Asia. We use a two-stage approach to study the post-crisis period 1999-2004. We first estimate technical efficiencies using Data Envelopment Analysis and test for cross-country differences. Efficiency scores are relatively high for South Korea and relatively low for the Philippines. We then investigate the link between ownership structure and efficiency controlling for various factors such as size, risk and the economic environment. We find that efficiency scores are higher for banks which are held by minority private shareholders and banks that are foreign-owned.

Suggested Citation

  • Thierno Amadou Barry & Santos José O. Dacanay & Laetitia Lepetit & Amine Tarazi, 2011. "Ownership Structure and Bank Efficiency in Six Asian Countries," Post-Print hal-00786449, HAL.
    • Handle: RePEc:hal:journl:hal-00786449
    Note: View the original document on HAL open archive server: https://unilim.hal.science/hal-00786449
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    References listed on IDEAS

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    1. Bos, J.W.B. & Kool, C.J.M., 2006. "Bank efficiency: The role of bank strategy and local market conditions," Journal of Banking & Finance, Elsevier, vol. 30(7), pages 1953-1974, July.
    2. Laeven,Luc A., 1999. "Risk and efficiency in East Asian banks," Policy Research Working Paper Series 2255, The World Bank.
    3. Barbara Casu & Philip Molyneux, 2003. "A comparative study of efficiency in European banking," Applied Economics, Taylor & Francis Journals, vol. 35(17), pages 1865-1876.
    4. Mei Xue & Patrick T. Harker, 1999. "Overcoming the Inherent Dependency of DEA Efficiency Scores: A Bootstrap Approach," Center for Financial Institutions Working Papers 99-17, Wharton School Center for Financial Institutions, University of Pennsylvania.
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    2. Eric Fosu Oteng-Abayie, 2017. "Technical efficiency and total factor productivity of rural banks in Ghana," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1366088-136, January.
    3. Rossazana Ab-Rahim & Norlina Kadri & Amy-Chin Ee-Ling & Abdul Alim Dee, 2018. "CAMEL Analysis on Performance of ASEAN Public Listed Banks," International Business Research, Canadian Center of Science and Education, vol. 11(4), pages 96-105, April.
    4. Hasanul Banna & Syed Karim Bux Shah & Abu Hanifa Md Noman & Rubi Ahmad & Muhammad Mehedi Masud, 2019. "Determinants of Sino-ASEAN Banking Efficiency: How Do Countries Differ?," Economies, MDPI, vol. 7(1), pages 1-23, February.
    5. 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.
    6. Zhenni Yang & Christopher Gan & Zhaohua Li, 2019. "Role of Bank Regulation on Bank Performance: Evidence from Asia-Pacific Commercial Banks," JRFM, MDPI, vol. 12(3), pages 1-25, August.
    7. OKUDA, Hidenobu & 奥田, 英信 & AIBA, Daiju & 相場, 大樹, 2014. "Determinants of Operational Efficiency and Total Factor Productivity Change of Major Cambodian Financial Institutions : A Data Envelopment Analysis during the Period of 2006-2013," Discussion Papers 2014-14, Graduate School of Economics, Hitotsubashi University.

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