Evaluating the performance of Chinese commercial banks: a comparative analysis of different types of banks

2.50
Hdl Handle:
http://hdl.handle.net/10545/605705
Title:
Evaluating the performance of Chinese commercial banks: a comparative analysis of different types of banks
Authors:
Dong, Yizhe; Firth, Michael; Hou, Wenxuan; Yang, Weiwei
Abstract:
This paper examines the cost and profit efficiency of four types of Chinese commercial banks over the period from 2002 to 2013. We find that the cost and profit efficiencies improved across all types of Chinese domestic banks in general and the banks are more profit-efficient than cost efficient. Foreign banks are the most cost efficient but the least profit efficient. The profit efficiency gap between foreign banks and domestic banks has widened after the World Trade Organization transition period (2007–2013). Ownership structure, market competition, bank size, and listing status are the main determinants of the efficiency of Chinese banks. We also find a causal relationship between efficiency and SROE by using the panel auto regression method. The evidence from the shadow return on equity (SROE) suggests that policy makers should be cautious of the adjustment costs imposed by the recapitalization process, which offsets the efficiency gains.
Affiliation:
University of Derby
Citation:
Dong, Y. et al (2016) 'Evaluating the performance of Chinese commercial banks: a comparative analysis of different types of banks', European Journal of Operational Research, 252 (1):280.
Publisher:
Elsevier
Journal:
European Journal of Operational Research
Issue Date:
Jul-2016
URI:
http://hdl.handle.net/10545/605705
DOI:
10.1016/j.ejor.2015.12.038
Additional Links:
http://linkinghub.elsevier.com/retrieve/pii/S0377221715011777
Type:
Article
Language:
en
ISSN:
03772217
Appears in Collections:
Derby Business School

Full metadata record

DC FieldValue Language
dc.contributor.authorDong, Yizheen
dc.contributor.authorFirth, Michaelen
dc.contributor.authorHou, Wenxuanen
dc.contributor.authorYang, Weiweien
dc.date.accessioned2016-04-18T11:38:32Zen
dc.date.available2016-04-18T11:38:32Zen
dc.date.issued2016-07en
dc.identifier.citationDong, Y. et al (2016) 'Evaluating the performance of Chinese commercial banks: a comparative analysis of different types of banks', European Journal of Operational Research, 252 (1):280.en
dc.identifier.issn03772217en
dc.identifier.doi10.1016/j.ejor.2015.12.038en
dc.identifier.urihttp://hdl.handle.net/10545/605705en
dc.description.abstractThis paper examines the cost and profit efficiency of four types of Chinese commercial banks over the period from 2002 to 2013. We find that the cost and profit efficiencies improved across all types of Chinese domestic banks in general and the banks are more profit-efficient than cost efficient. Foreign banks are the most cost efficient but the least profit efficient. The profit efficiency gap between foreign banks and domestic banks has widened after the World Trade Organization transition period (2007–2013). Ownership structure, market competition, bank size, and listing status are the main determinants of the efficiency of Chinese banks. We also find a causal relationship between efficiency and SROE by using the panel auto regression method. The evidence from the shadow return on equity (SROE) suggests that policy makers should be cautious of the adjustment costs imposed by the recapitalization process, which offsets the efficiency gains.en
dc.language.isoenen
dc.publisherElsevieren
dc.relation.urlhttp://linkinghub.elsevier.com/retrieve/pii/S0377221715011777en
dc.rightsArchived with thanks to European Journal of Operational Researchen
dc.subjectFinanceen
dc.subjectEfficiencyen
dc.subjectStochastic frontier analysisen
dc.subjectShadow return on equityen
dc.subjectChinese bankingen
dc.titleEvaluating the performance of Chinese commercial banks: a comparative analysis of different types of banksen
dc.typeArticleen
dc.contributor.departmentUniversity of Derbyen
dc.identifier.journalEuropean Journal of Operational Researchen
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