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DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA

Yıl 2012, Cilt: 4 Sayı: 2, 163 - 173, 01.12.2012

Öz

This study investigates the determinants of banks’ profit efficiency over period 2005-2009 in Indonesian banks. Specifically it examines bank size, credit risk, capital, ownership structure and market share on banks profit efficiency. A two stage research methods is employed. First, the scores of bank efficiency are estimated using Stochastic Frontier Analysis (SFA). Second, the scores obtained are linked to a series of determinants of bank efficiency using regression techniques. The results show that score efficiency of bank in Indonesia is still inefficient. Therefore that there is a high potential to increase profit efficiency in Indonesian banks. Other result show that size, capital, ownership structure and market share of bank have significant impact on bank profit efficiency but credit risk has insignificant impact on bank profit efficiency. These results offer practical contribution to bank managers, practitioners and policy makers on the relevance of a number driving factors of bank efficiency that might help them to improve bank efficiency and banking system efficiency

Kaynakça

  • Altunbas, Y., Evans, L. and Molyneux, P., (2001). "Bank ownership and efficiency". Journal of Money, Credit and Banking, 33 (4):926-954.
  • Altunbas, Y., Liu, M.H., Molyneux, P. and Seth, R., (2000). "Efficiency and risk in Japanese banking". Journal of Banking and Finance, 24 (10):1605-1628.
  • Athanasoglou, P.P., Brissimis, S.N. and Delis, M.D., (2008). "Bank-specific, industry-specific and macroeconomic determinants of bank profitability". Journal of International Financial Markets, Institutions & Money, 18 (2):121-136.
  • Berger, A.N., (1995). "The profit-structure relationship in banking--tests of market-power and efficient-structure hypotheses". Journal of Money, Credit and Banking, 27 (2):404-431.
  • Berger, A.N., Hancock, D. and Humphrey, D.B., (1993). "Bank Efficiency Derived from the Profit Function". Journal of Banking and Finance, 17 (2):317- 347.
  • Berger, A.N., Hasan, I. and Zhou, M., (2005). 'Bank Efficiency, Ownership and Foreign Entry in a Transitional Economy: The Chinese Experience'.
  • Berger, A.N., Hasan, I. and Zhou, M., (2009). "Bank ownership and efficiency in China: What will happen in the world’s largest nation?". Journal of Banking and Finance, 33 (1):113-130.
  • Berger, A.N. and Humphrey, D.B., (1997). "Efficiency of financial institutions: International survey and directions for future research". European Journal of Operational Research, 98 (2):175-212.
  • Berger, A.N. and Mester, L.J., (1997). "Inside the black box: What explains differences in the efficiencies of financial institutions?". Journal of Banking & Finance, 21:895-947
  • Bonin, J.P., Hasan, I. and Wachtel, P., (2005). "Bank performance, efficiency and ownership in transition countries". Journal of Banking and Finance, 29 (1):31-53. Casu, B. and Molyneux, P., (2003). "A comparative study of efficiency in European banking". Applied Economics, 35 (17):1865-1876.
  • Cebenoyan, A.S., Cooperman, C.A. and Hudgins, S.C., (1993). "The relative efficiency of stock vs mutual S&Ls: A stochastic frontier approach". Journal of Financial Services Research, 7:151-170
  • Cooper, M., Jackson, W. and Patterson, G., (2003). "Evidence of predictability in the cross section of bank stock returns". Journal of Banking & Finance, 27:817- 850.
  • Delis, M.D. and Papanikolaou, N.I., (2009). "Determinants of bank efficiency: evidence from a semi-parametric methodology". Managerial Finance, 35 (3):260- 275.
  • DeYoung, R. and Nolle, D.E., (1996). "Foreign-owned banks in the United States: Earning market share or buying it?". Journal of Money, Credit & Banking, 28 (4). Girardone, C., Molyneux, P. and Gardener, E.P.M., (2004). "Analysing the determinants of bank efficiency: the case of Italian banks". Applied Economics, 36 (3):215-227.
  • Hasan, I. and Hunter, W., (1996). "Efficiency of Japanese multinational Banks in the United States". Research in Finance, 14:157-173.
  • Hughes, J.P. and Mester, L.J., (1998). "Bank capitalization and cost: Evidence of scale economies in risk management and signaling". Review of Economics and Statistics, 80 (2):314-325.
  • Kaparakis, E.I., Miller, S.M. and Noulas, A.G., (1994). "Short run cost inefficiency of commercial banks: A flexibel stochastic frontier approach". Journal of Money, Credit & Banking, 26:875-893
  • Kwan, S. and Eisenbeis, R.A., (1997). "Bank risk, capitalization, and operating efficiency". Journal of Financial Services Research, 12 (2):117-131.
  • Mester, L.J., (1996). "A study of bank efficiency taking into account risk- preferences". Journal of Banking & Finance, 20 (6):1025-1045.
  • Miller, S. and Parkhe, A., (2002). "Is there a liability of foreignness in global banking? An empirical test of banks’ x-efficiency". Strategic Management Journal, 23:55-76.
  • Sturm, J.E. and Williams, B., (2004). "Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience". Journal of Banking and Finance, 28 (7):1775-1799.
Yıl 2012, Cilt: 4 Sayı: 2, 163 - 173, 01.12.2012

Öz

Kaynakça

  • Altunbas, Y., Evans, L. and Molyneux, P., (2001). "Bank ownership and efficiency". Journal of Money, Credit and Banking, 33 (4):926-954.
  • Altunbas, Y., Liu, M.H., Molyneux, P. and Seth, R., (2000). "Efficiency and risk in Japanese banking". Journal of Banking and Finance, 24 (10):1605-1628.
  • Athanasoglou, P.P., Brissimis, S.N. and Delis, M.D., (2008). "Bank-specific, industry-specific and macroeconomic determinants of bank profitability". Journal of International Financial Markets, Institutions & Money, 18 (2):121-136.
  • Berger, A.N., (1995). "The profit-structure relationship in banking--tests of market-power and efficient-structure hypotheses". Journal of Money, Credit and Banking, 27 (2):404-431.
  • Berger, A.N., Hancock, D. and Humphrey, D.B., (1993). "Bank Efficiency Derived from the Profit Function". Journal of Banking and Finance, 17 (2):317- 347.
  • Berger, A.N., Hasan, I. and Zhou, M., (2005). 'Bank Efficiency, Ownership and Foreign Entry in a Transitional Economy: The Chinese Experience'.
  • Berger, A.N., Hasan, I. and Zhou, M., (2009). "Bank ownership and efficiency in China: What will happen in the world’s largest nation?". Journal of Banking and Finance, 33 (1):113-130.
  • Berger, A.N. and Humphrey, D.B., (1997). "Efficiency of financial institutions: International survey and directions for future research". European Journal of Operational Research, 98 (2):175-212.
  • Berger, A.N. and Mester, L.J., (1997). "Inside the black box: What explains differences in the efficiencies of financial institutions?". Journal of Banking & Finance, 21:895-947
  • Bonin, J.P., Hasan, I. and Wachtel, P., (2005). "Bank performance, efficiency and ownership in transition countries". Journal of Banking and Finance, 29 (1):31-53. Casu, B. and Molyneux, P., (2003). "A comparative study of efficiency in European banking". Applied Economics, 35 (17):1865-1876.
  • Cebenoyan, A.S., Cooperman, C.A. and Hudgins, S.C., (1993). "The relative efficiency of stock vs mutual S&Ls: A stochastic frontier approach". Journal of Financial Services Research, 7:151-170
  • Cooper, M., Jackson, W. and Patterson, G., (2003). "Evidence of predictability in the cross section of bank stock returns". Journal of Banking & Finance, 27:817- 850.
  • Delis, M.D. and Papanikolaou, N.I., (2009). "Determinants of bank efficiency: evidence from a semi-parametric methodology". Managerial Finance, 35 (3):260- 275.
  • DeYoung, R. and Nolle, D.E., (1996). "Foreign-owned banks in the United States: Earning market share or buying it?". Journal of Money, Credit & Banking, 28 (4). Girardone, C., Molyneux, P. and Gardener, E.P.M., (2004). "Analysing the determinants of bank efficiency: the case of Italian banks". Applied Economics, 36 (3):215-227.
  • Hasan, I. and Hunter, W., (1996). "Efficiency of Japanese multinational Banks in the United States". Research in Finance, 14:157-173.
  • Hughes, J.P. and Mester, L.J., (1998). "Bank capitalization and cost: Evidence of scale economies in risk management and signaling". Review of Economics and Statistics, 80 (2):314-325.
  • Kaparakis, E.I., Miller, S.M. and Noulas, A.G., (1994). "Short run cost inefficiency of commercial banks: A flexibel stochastic frontier approach". Journal of Money, Credit & Banking, 26:875-893
  • Kwan, S. and Eisenbeis, R.A., (1997). "Bank risk, capitalization, and operating efficiency". Journal of Financial Services Research, 12 (2):117-131.
  • Mester, L.J., (1996). "A study of bank efficiency taking into account risk- preferences". Journal of Banking & Finance, 20 (6):1025-1045.
  • Miller, S. and Parkhe, A., (2002). "Is there a liability of foreignness in global banking? An empirical test of banks’ x-efficiency". Strategic Management Journal, 23:55-76.
  • Sturm, J.E. and Williams, B., (2004). "Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience". Journal of Banking and Finance, 28 (7):1775-1799.
Toplam 21 adet kaynakça vardır.

Ayrıntılar

Diğer ID JA83KS89TM
Bölüm Makaleler
Yazarlar

- Muazaroh Bu kişi benim

Tandelilin Eduardus Bu kişi benim

Suad Husnan Bu kişi benim

Mamduh M. Hanafi Bu kişi benim

Yayımlanma Tarihi 1 Aralık 2012
Yayımlandığı Sayı Yıl 2012 Cilt: 4 Sayı: 2

Kaynak Göster

APA Muazaroh, .-., Eduardus, T., Husnan, S., Hanafi, M. M. (2012). DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA. International Journal of Economics and Finance Studies, 4(2), 163-173.
AMA Muazaroh, Eduardus T, Husnan S, Hanafi MM. DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA. IJEFS. Aralık 2012;4(2):163-173.
Chicago Muazaroh, -, Tandelilin Eduardus, Suad Husnan, ve Mamduh M. Hanafi. “DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA”. International Journal of Economics and Finance Studies 4, sy. 2 (Aralık 2012): 163-73.
EndNote Muazaroh -, Eduardus T, Husnan S, Hanafi MM (01 Aralık 2012) DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA. International Journal of Economics and Finance Studies 4 2 163–173.
IEEE .-. Muazaroh, T. Eduardus, S. Husnan, ve M. M. Hanafi, “DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA”, IJEFS, c. 4, sy. 2, ss. 163–173, 2012.
ISNAD Muazaroh, - vd. “DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA”. International Journal of Economics and Finance Studies 4/2 (Aralık 2012), 163-173.
JAMA Muazaroh -, Eduardus T, Husnan S, Hanafi MM. DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA. IJEFS. 2012;4:163–173.
MLA Muazaroh, - vd. “DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA”. International Journal of Economics and Finance Studies, c. 4, sy. 2, 2012, ss. 163-7.
Vancouver Muazaroh -, Eduardus T, Husnan S, Hanafi MM. DETERMINANTS OF BANK PROFIT EFFICIENCY: EVIDENCE FROM INDONESIA. IJEFS. 2012;4(2):163-7.