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Efficiencies of Small Financial Cooperatives in Japan: Comparison of Estimation Methods

Author

Listed:
  • Kozo Harimaya

    (College of Business Administration, Ritsumeikan University)

  • Kei Tomimura

    (Faculty of Business Administration, Aichi University)

  • Nobuyoshi Yamori

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

This study investigates the efficiency of Japanese credit cooperatives using a stochastic directional distance function approach and compares the results obtained from a slack-based data envelopment analysis model (SBM). Moreover, it focuses on the differences in the four groups classified by a type of common bond in a membership and considers the validity of small financial cooperatives. The findings reveal that ethnic minority-owned cooperatives that experienced a drastic consolidation in the last two decades are more efficient than the other groups and those owned through an industry-based membership are less efficient. Although the results slightly differ among alternative measures, this paper emphasizes the potential merger effects of small financial cooperatives in Japan.

Suggested Citation

  • Kozo Harimaya & Kei Tomimura & Nobuyoshi Yamori, 2015. "Efficiencies of Small Financial Cooperatives in Japan: Comparison of Estimation Methods," Discussion Paper Series DP2015-04, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2015-04
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2015-04.pdf
    File Function: First version, 2015
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    References listed on IDEAS

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    More about this item

    Keywords

    Efficiency; Cooperative financial institutions; Consolidation;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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