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The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of Hong Kong's financial services sector
This paper assesses the relative technical efficiency of institutions operating in a market that has been significantly affected by environmental and market factors in recent years, the Hong Kong banking sector. These environmental factors are specifically incorporated into the efficiency analysis u...
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| Main Authors: | , , |
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| Format: | Default Preprint |
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2003
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| Online Access: | https://hdl.handle.net/2134/354 |
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| _version_ | 1818174981674106880 |
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| author | Leigh M. Drake Maximilian Hall Richard Simper |
| author_facet | Leigh M. Drake Maximilian Hall Richard Simper |
| author_sort | Leigh M. Drake (7195619) |
| collection | Figshare |
| description | This paper assesses the relative technical efficiency of institutions operating in a market that has been significantly affected by environmental and market factors in recent years, the Hong Kong banking sector. These environmental factors are specifically incorporated into the efficiency analysis using the innovative slacks-based, second stage Tobit regression approach advocated by Fried et al (1999). A further innovation is that we also employ Tone’s (2001) slacks-based model (SBM) to conduct the Data Envelopment Analysis (DEA), in addition to the more traditional approach attributable to Banker, Charnes and Cooper (BCC) (1984). The results indicate that both adjustments can have a significant impact on relative efficiency measures, ranks and trends, which is an important issue if such relative efficiency measures are to be used in policy analysis. The results also indicate: high levels of technical inefficiency for many institutions; considerable variations in efficiency levels and trends across size groups and financial sectors; and also differential impacts of environmental factors on different size groups and financial sectors. |
| format | Default Preprint |
| id | rr-article-9492545 |
| institution | Loughborough University |
| publishDate | 2003 |
| record_format | Figshare |
| spelling | rr-article-94925452003-01-01T00:00:00Z The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of Hong Kong's financial services sector Leigh M. Drake (7195619) Maximilian Hall (1247469) Richard Simper (7195598) Other economics not elsewhere classified Data envelopment analysis Slack adjustments Hong Kong banks Efficiency Regulation Environmental variables Economics not elsewhere classified This paper assesses the relative technical efficiency of institutions operating in a market that has been significantly affected by environmental and market factors in recent years, the Hong Kong banking sector. These environmental factors are specifically incorporated into the efficiency analysis using the innovative slacks-based, second stage Tobit regression approach advocated by Fried et al (1999). A further innovation is that we also employ Tone’s (2001) slacks-based model (SBM) to conduct the Data Envelopment Analysis (DEA), in addition to the more traditional approach attributable to Banker, Charnes and Cooper (BCC) (1984). The results indicate that both adjustments can have a significant impact on relative efficiency measures, ranks and trends, which is an important issue if such relative efficiency measures are to be used in policy analysis. The results also indicate: high levels of technical inefficiency for many institutions; considerable variations in efficiency levels and trends across size groups and financial sectors; and also differential impacts of environmental factors on different size groups and financial sectors. 2003-01-01T00:00:00Z Text Preprint 2134/354 https://figshare.com/articles/preprint/The_impact_of_macroeconomic_and_regulatory_factors_on_bank_efficiency_a_non-parametic_analysis_of_Hong_Kong_s_financial_services_sector/9492545 CC BY-NC-ND 4.0 |
| spellingShingle | Other economics not elsewhere classified Data envelopment analysis Slack adjustments Hong Kong banks Efficiency Regulation Environmental variables Economics not elsewhere classified Leigh M. Drake Maximilian Hall Richard Simper The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of Hong Kong's financial services sector |
| title | The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of Hong Kong's financial services sector |
| title_full | The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of Hong Kong's financial services sector |
| title_fullStr | The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of Hong Kong's financial services sector |
| title_full_unstemmed | The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of Hong Kong's financial services sector |
| title_short | The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of Hong Kong's financial services sector |
| title_sort | impact of macroeconomic and regulatory factors on bank efficiency: a non-parametic analysis of hong kong's financial services sector |
| topic | Other economics not elsewhere classified Data envelopment analysis Slack adjustments Hong Kong banks Efficiency Regulation Environmental variables Economics not elsewhere classified |
| url | https://hdl.handle.net/2134/354 |