TY - JOUR
T1 - Cost efficiency in South Asian banking: The impact of bank size, state ownership and stock exchange listings*
AU - Perera, Shrimal
AU - Skully, Michael
AU - Wickramanayake, J.
PY - 2008/1/14
Y1 - 2008/1/14
N2 - This study examines the cost efficiency performance of 111 commercial banks in Bangladesh, India, Pakistan and Sri Lanka over 1997-2004. The primary focus is to assess whether bank size, state ownership and stock exchange listing have significant effects on South Asian banks' efficiency performance. To this end, a translog-form composite-error cost efficiency model, which allows for exogenous environmental influences, is estimated. The results indicate that the overall efficiency of South Asian banks declined over 1997-2004. Larger banks and banks with widespread ownership through stock exchange listings were found to be relatively more cost efficient. In contrast, state-owned banks were less efficient.
AB - This study examines the cost efficiency performance of 111 commercial banks in Bangladesh, India, Pakistan and Sri Lanka over 1997-2004. The primary focus is to assess whether bank size, state ownership and stock exchange listing have significant effects on South Asian banks' efficiency performance. To this end, a translog-form composite-error cost efficiency model, which allows for exogenous environmental influences, is estimated. The results indicate that the overall efficiency of South Asian banks declined over 1997-2004. Larger banks and banks with widespread ownership through stock exchange listings were found to be relatively more cost efficient. In contrast, state-owned banks were less efficient.
UR - https://www.mendeley.com/catalogue/69f0ac83-56fa-394e-8dce-812e967c1f23/
U2 - 10.1111/j.1468-2443.2007.00067.x
DO - 10.1111/j.1468-2443.2007.00067.x
M3 - Article
SN - 1369-412X
VL - 7
SP - 35
EP - 60
JO - International Review of Finance
JF - International Review of Finance
IS - 1-2
ER -