Artikel

Financial market regulation, country governance, and bank efficiency: Evidence from East Asian countries

This paper examines the relationship between financial market regulation, country governance and efficiency of commercial banks in East Asian economies during the period 2001-2008 using a two-stage estimation technique. In the first stage, we employ a non-parametric approach-Data Envelopment Analysis (DEA)-to estimate the banks' cost and profit efficiency scores and then Tobit estimation to analyze the impact of financial market regulations and country governance on bank efficiency. The results suggest that commercial banks in East Asia are relatively profit efficient rather than cost efficient. The findings show that countries with more financial freedom and independence are more cost efficient. Moreover, government effectiveness is found to be positively related to bank efficiency. Consistent with economic theory, corruption is negatively related to bank efficiency. Therefore, this study reveals the importance of financial market regulations and country governance as catalysts for efficient banking operations in East Asian economies.

Sprache
Englisch

Erschienen in
Journal: Contemporary Economics ; ISSN: 2084-0845 ; Volume: 10 ; Year: 2016 ; Issue: 1 ; Pages: 39-54 ; Warsaw: Vizja Press & IT

Klassifikation
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Thema
bank efficiency
institutional environment
data envelopment analysis
tobit regression
East Asia

Ereignis
Geistige Schöpfung
(wer)
Chan, Sok-Gee
Karim, Mohd Zaini Abd
Ereignis
Veröffentlichung
(wer)
Vizja Press & IT
(wo)
Warsaw
(wann)
2016

DOI
doi:10.5709/ce.1897-9254.197
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Chan, Sok-Gee
  • Karim, Mohd Zaini Abd
  • Vizja Press & IT

Entstanden

  • 2016

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