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Article
Publication date: 6 May 2014

Aktham I. Maghyereh and Basel Awartani

The purpose of this paper is to analyze the efficiency performance of the Gulf Cooperation Countries (GCC) banking sector. The primary focus is to assess whether market…

Abstract

Purpose

The purpose of this paper is to analyze the efficiency performance of the Gulf Cooperation Countries (GCC) banking sector. The primary focus is to assess whether market power, risk taking activities, and regulations have significant effects on GCC banks’ efficiency performance.

Design/methodology/approach

The estimation and inference has been implemented using a double bootstrap procedure that simultaneously corrects for bias and validates inference on the influence of covariates. In the first stage, efficiency scores are estimated with data envelopment analysis (DEA). In the second stage, variation in the resulting efficiency scores is explained using a truncated regression model with inference based on a semi-parametric bootstrap routine.

Findings

The authors found compelling evidence that efficiency is not independent of the market structure, the bank's risk taking activities, and the regulatory environment. In particular, the Lerner Index provides evidence that market power decreases efficiency. The capital adequacy, the supervisory power and the market discipline were all found to improve efficiency. Additionally, when the risk is measured by the Z-Score or even by the ratio of non-performing loans to total loans, it adversely affects efficiency.

Research limitations/implications

The results of the current study have important implications for regulators and supervisors. Promoting banks’ competitive environment in the GCC countries through reducing the information barriers to entry, encouraging bank privatization, and lowering the activities restrictions can potentially improve operational efficiency of banks. Also enhancing banks’ diversification activities and risk management techniques may have the advantage of increasing operational efficiency. Furthermore, improvements in the regulatory conditions that enhance banking supervision and monitoring would also improve efficiency.

Originality/value

The main contributions of the paper are threefold: first, to the knowledge, this study is the first to employ by far the most comprehensive data set of GCC banks investigated to date. Second, the analysis focusses on the influence of a wide set of factors, most of them was not covered before in related economic literature on bank efficiency of the GCC countries. Third, the methodological innovation involves applying a double bootstrap procedure proposed by Simar and Wilson (2007).

Details

Journal of Economic Studies, vol. 41 no. 3
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 8 March 2021

Muhammad Yasir Faheem, Shun'an Zhong, Xinghua Wang and Muhammad Basit Azeem

There are many types of the ADCs implemented in the mobile and wireless devices. Most of these devices are battery operated and operational at low input voltage. SAR ADC…

Abstract

Purpose

There are many types of the ADCs implemented in the mobile and wireless devices. Most of these devices are battery operated and operational at low input voltage. SAR ADC is popular for its low power operations and simple architecture. Scientists are still working to make its working faster under the same low power area. There are many SAR-ADC implemented in the past two decades, but still, there is a big room for dual SAR-ADC.

Design/methodology/approach

The authors are presenting a dual SAR-ADC with a smaller number of components and blocks. The proposed ultra-low-power circuit of the SAR-ADC consists of four major blocks, which include Bee-bootstrap, Spider-Latch dual comparator, dual SAR-logic and dual digital to analog converter. The authors have used the 90-nm CMOS library for the construction of the design.

Findings

The power breaks down of the comparator are dramatically improved from 0.006 to 0.003 uW. The ultimate design has 5 MHz operating frequency with 25 KS/s sampling frequency. The supply voltage is 1.2 V with 35.724 uW power consumption. Signal-to-noise and distortion ratio and spurious-free dynamic range are 65 and 84 dB, respectively. The Walden's figure of merits calculated 7.08 fj/step.

Originality/value

The authors are proposing two-in-one circuit for SAR-ADC named as “dual SAR-ADC”, which obeys the basic equation of duality, derived and proved under the heading of proposed solution. It shows a clear difference between the performance of two circuit-based ADC and one dual circuit ADC. The number of components is reduced by sharing the work load of some key components.

Details

Circuit World, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0305-6120

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Article
Publication date: 1 August 2016

Yulia Titova

This paper aims to examine whether board-related characteristics matter for cost efficiency in banking sector.

Abstract

Purpose

This paper aims to examine whether board-related characteristics matter for cost efficiency in banking sector.

Design/methodology/approach

This study uses a sample of publicly traded US commercial banks and savings institutions to estimate a relationship between cost efficiency measured by stochastic frontier analysis and a set of board-related characteristics for the period 2007-2013.

Findings

An inverted U-shape relation is found between board size and efficiency. Thus, there is a trade-off between costs and benefits of larger boards. Optimal board size is higher for banks with more complex operations. This study also observed an inverted U-shape relation between board independence and cost efficiency. The banks where the Chairman also executes the CEO responsibility show lower efficiency. However, a higher proportion of independent board members in banks with unitary leadership structure may mitigate the conflict of interest and lower efficiency stemming from CEO duality.

Research limitations/implications

This study’s evidence supports the Basel Committee on Banking Supervision emphasis on advising a board composition that provides for a sufficient degree of director independence.

Practical Implications

The results are relevant for banks and their external and internal stakeholders. Banks may adjust their current board characteristics to increase the board effectiveness. Externally, potential investors can evaluate the quality of corporate governance of banks before making investment decisions. The empirical findings can also be useful for regulators imposing corporate governance codes in banking.

Originality/value

To the best of the authors’ knowledge, this is the first paper to provide empirical evidence on the impact of board characteristics on bank efficiency for a wide panel of US banks. Additionally, a comprehensive set of board-related variables is used.

Details

Corporate Governance, vol. 16 no. 4
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 12 December 2019

Yong Joo Lee and Seong-Jong Joo

Data envelopment analysis (DEA) is based on the production possibility set that involves the process of converting resources or inputs to outputs. Accordingly, most DEA…

Abstract

Purpose

Data envelopment analysis (DEA) is based on the production possibility set that involves the process of converting resources or inputs to outputs. Accordingly, most DEA models include endogenous variables and need an additional step to find the influence of exogenous variables on the process. The purpose of this paper is to examine the relationship between the efficiency scores of DEA and the exogenous variables using truncated regression analysis with double bootstrapping along with two additional methods.

Design/methodology/approach

First, the authors employ DEA for benchmarking the comparative efficiency of the health care institutes. Next, the authors run and compare truncated, ordinary least square (OLS) and Tobit regression analysis using the double bootstrapping algorithm for finding the influence of exogenous variables on the efficiency of the health care institutes.

Findings

The authors confirmed the amount of bias for the Tobit and OLS regression models, which was caused by serially correlated errors. Accordingly, the authors chose results from the truncated regression model with double bootstrapping for examining the influence of exogenous or environment variables on the efficiency scores.

Research limitations/implications

The study includes cross-sectional data on health care institutes in the state of Washington, USA. Collecting data in various states or regions over time is left for future studies.

Practical implications

In this study, three exogenous variables such as Medicaid revenues, locations of health care institutes and ownership types are significant for explaining the relationship between the efficiency scores and a group of the exogenous variables. Managers and policy makers need to pay attention to these variables along with endogenous variables for promoting the sustainability of the health care institutes.

Originality/value

The study demonstrates the usefulness of the truncated regression analysis with double bootstrapping for confirming the relationship between the efficiency scores of DEA and a group of exogenous variables, which is rare in the DEA literature.

Details

Benchmarking: An International Journal, vol. 27 no. 1
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 10 June 2021

Asif Khan and Rachita Gulati

This paper aims to examine the total factor productivity (TFP) change and its components: efficiency change and technical change in microfinance institutions (MFIs) in…

Abstract

Purpose

This paper aims to examine the total factor productivity (TFP) change and its components: efficiency change and technical change in microfinance institutions (MFIs) in India operating from 2005 to 2018. The study also scrutinizes the variations in productivity levels across the distinct organizational form and size groups of MFIs. In addition to this, the authors identify the contextual factors that determine TFP growth, catching-up and technology innovation in MFIs.

Design/methodology/approach

The study employs a smooth homogeneous bootstrap estimation procedure of Simar and Wilson (1999) for obtaining reliable estimates of Malmquist indices –productivity and its components – in a data envelopment analysis (DEA) framework for individual MFIs. In order to identify the determinants of productivity change and its components, the study follows Simar and Wilson's (2007) guidelines and applies a bootstrap truncated regression model. The double bootstrap procedure performs well, both in terms of allowing correct estimation of bias and deriving statistically consistent productivity estimates in the first and root mean square errors in the second stage of the analysis.

Findings

The empirical results reveal that the MFIs have shown average productivity growth of 6.70% during the entire study period. The observed productivity gains are primarily contributed by a larger efficiency increase at the rate of 4.80%, while technical progress occurs at 2.3%. Nonbanking financial companies (NBFC)-MFIs outperformed non-NBFC-MFIs. Small MFIs show the highest TFP growth in terms of size groups, followed by the large MFIs and medium MFIs. The bootstrap truncated regression results suggest that the credit portfolio, size and age of MFIs matter in achieving higher productivity levels.

Practical implications

The practical implication drawn from the study is that the Indian MFI industry might adopt the latest technology and innovations in the products, risk assessment and credit delivery to improve their productivity levels. The industry must focus on enhancing the managerial skill of its employees to achieve a high productivity level.

Originality/value

This study is perhaps the initial attempt to explain the productivity behavior of MFIs in India by deploying a statistically robust double bootstrap procedure in the DEA-based Malmquist Productivity Index (MPI) framework. The authors estimate the bias-adjusted productivity index and its decompositions, which represent more reliable and statistically consistent estimates. For contextual factors responsible for driving productivity change, the study deploys a bootstrap truncated regression approach.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

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Book part
Publication date: 23 August 2011

Marko Sarstedt, Jörg Henseler and Christian M. Ringle

Purpose – Partial least squares (PLS) path modeling has become a pivotal empirical research method in international marketing. Owing to group comparisons' important role…

Abstract

Purpose – Partial least squares (PLS) path modeling has become a pivotal empirical research method in international marketing. Owing to group comparisons' important role in research on international marketing, we provide researchers with recommendations on how to conduct multigroup analyses in PLS path modeling.

Methodology/approach – We review available multigroup analysis methods in PLS path modeling and introduce a novel confidence set approach. A characterization of each method's strengths and limitations and a comparison of their outcomes by means of an empirical example extend the existing knowledge of multigroup analysis methods. Moreover, we provide an omnibus test of group differences (OTG), which allows testing the differences across more than two groups.

Findings – The empirical comparison results suggest that Keil et al.'s (2000) parametric approach can generally be considered more liberal in terms of rendering a certain difference significant. Conversely, the novel confidence set approach and Henseler's (2007) approach are more conservative.

Originality/value of paper – This study is the first to deliver an in-depth analysis and a comparison of the available procedures with which to statistically assess differences between group-specific parameters in PLS path modeling. Moreover, we offer two important methodological extensions of existing research (i.e., the confidence set approach and OTG). This contribution is particularly valuable for international marketing researchers, as it offers recommendations regarding empirical applications and paves the way for future research studies aimed at comparing the approaches' properties on the basis of simulated data.

Details

Measurement and Research Methods in International Marketing
Type: Book
ISBN: 978-1-78052-095-7

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Article
Publication date: 3 May 2013

Mohamed Sahbi Nakhli and Lotfi Belkacem

The purpose of this paper is to test the performance of momentum strategies and identify the sources of their profits.

Abstract

Purpose

The purpose of this paper is to test the performance of momentum strategies and identify the sources of their profits.

Design/methodology/approach

To identify the main source of momentum profits, first, the bootstrap method with replacement was used. Then, to eliminate the existence of the small sample bias, the bootstrap method without replacement and the block bootstrap method were employed. In this case, when the authors draw the observations without replacement the random effect is reduced, whereas the resampling procedure is based on the random draw.

Findings

The empirical results show the existence of a small sample bias in the bootstrap method with replacement, and that the time‐series relations of stock returns are the main source of momentum profits.

Originality/value

To ensure the random effect of the draws, the authors develop a new resampling procedure called the mixed bootstrap method.

Details

Managerial Finance, vol. 39 no. 6
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 10 October 2016

Thanh Pham Thien Nguyen and Son Hong Nghiem

The purpose of this paper is to examine the operational efficiency and effects of market concentration and diversification on the efficiency of Chinese and Indian banks in…

Abstract

Purpose

The purpose of this paper is to examine the operational efficiency and effects of market concentration and diversification on the efficiency of Chinese and Indian banks in the 1997-2011 period.

Design/methodology/approach

This study employs the two-stage bootstrap procedure of Simar and Wilson (2007) to obtain valid inferences on the efficiency scores and the efficiency determinants.

Findings

Using data set for each country separately, the authors found that the bias-corrected cost efficiency displays an upward trend in Chinese and Indian banks. This trend is consistent with profit efficiency among Chinese banks, but the trend is unclear in Indian banks. Market concentration is negatively related to cost and profit efficiencies of Chinese banks. However, market concentration is positively associated with cost efficiency, but unrelated to profit efficiency of Indian banks. In Chinese banks, diversification of revenue, earning assets and non-lending earning assets are associated with increasing profit efficiency, but their effects to cost efficiency are not clear. In Indian banks, diversification of earning assets increases profit efficiency while there are cost efficiency losses from diversification of revenue and earning assets.

Practical implications

Bank regulators and supervisors in China should consider establishing policies to reduce market concentration and encourage diversification of revenue, earning assets and non-lending earning assets, while increasing concentration and diversification of earning assets should be encouraged in Indian banks.

Originality/value

To the best of the authors’ knowledge, this is the first study employing the double bootstrap procedure proposed by Simar and Wilson (2007) which can address the problem of the two-stage data envelopment analysis or SFA estimator in the efficiency literature on Chinese and Indian banks that efficiency scores obtained in the first stage are inter-dependent, and hence violating the basic assumption in regression analysis in the second stage.

Details

Managerial Finance, vol. 42 no. 10
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 18 September 2020

Asif Khan and Saba Shireen

The study attempts to examine the bias-adjusted financial and operational efficiency estimates of microfinance institutions (MFIs) operating in the Eastern Europe and…

Abstract

Purpose

The study attempts to examine the bias-adjusted financial and operational efficiency estimates of microfinance institutions (MFIs) operating in the Eastern Europe and Central Asia (ECA) region during the financial year 2017–2018. In addition, the study also identifies the responsible factors determining the financial and operational performances of MFIs operating in the ECA region.

Design/methodology/approach

The study employs two-stage bootstrap data envelopment analysis (DEA). In the first stage, the authors incorporate the bootstrap procedure in the DEA framework as suggested by Simar and Wilson (2000) to estimate the bias-corrected efficiency scores of 67 sample MFIs. In order to identify the drivers of efficiency level, the study deploys the bootstrap truncated regression model following the Simar and Wilson (2007) guidelines in the second stage of analysis.

Findings

The authors note from the empirical results that MFIs operating in the ECA region are relatively more financially efficient (0.588) than socially efficient (0.496). However, none of the MFIs were found to be operating at best-practice frontier while considering the bias-adjusted efficiency estimates. Further, the results of second stage of analysis confirm that corporate governance, that is, board size has positive and statistically significant impact on MFIs’ performances. In addition, the bad credit quality deteriorates both financial revenue and operational efficiency. Moreover, the MFIs’ size, profit status and debt-to-equity ratio were also found to be statistically significant to determine the operational and financial efficiency of MFIs in the ECA region.

Practical implications

The study provides the robust efficiency estimates and factors responsible to determine the financial and operational efficiency of MFIs operating in the ECA region. Further, the empirical results of the study provide the inputs and further direction to the policymakers, regulators, practitioners and managers in framing the policy and optimal operating strategies for ECA MFIs industry.

Originality/value

The study extends the DEA analysis by incorporating the bootstrap procedure in DEA model to estimate the bias-adjusted efficiency scores which are more reliable and robust. In addition, bootstrap truncated regression has been applied to identify the drivers of efficiency. Moreover, in the literature there is no single study which has deployed the double bootstrap DEA framework to examine the financial and operational efficiency estimates and its drivers.

Details

Benchmarking: An International Journal, vol. 27 no. 9
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 17 August 2020

Kuo-Cheng Kuo, Wen-Min Lu, Qian Long Kweh and Minh-Hieu Le

This study aims to evaluate cargo and eco-efficiency of global container shipping companies (CSCs) and explore the determinants of the CSCs' efficiencies. While the former…

Abstract

Purpose

This study aims to evaluate cargo and eco-efficiency of global container shipping companies (CSCs) and explore the determinants of the CSCs' efficiencies. While the former is derived from the CSCs' operational perspective, the latter highlights environmental issue related to carbon emission reduction.

Design/methodology/approach

In the first stage, a two-stage double bootstrap approach of data envelopment analysis (DEA) is applied to derive bias-corrected cargo and eco-efficiency of the top ten global CSCs under the variable returns to scale assumption. In the second stage, ordinary least squares and truncated regression are applied to examine determinants of the CSCs' efficiencies.

Findings

The DEA results reveal that the cargo efficiency of the CSCs is higher than their eco-efficiency by about 2.6% under variable returns to scale in DEA. However, the bias-corrected results show that the difference is 2.9%. The overall average efficiencies suggest that the CSCs can improve their cargo (eco) efficiency by 6.9% (10.8%). In the second stage, the regression results show that the numbers of ship, return on assets and asset turnover ratio are significantly related to both cargo and eco-efficiencies, whereas the total fleet capacity positively affects cargo efficiency.

Research limitations/implications

The results of this study can help the inefficient CSCs make strategic decisions to improve their performance. For example, their business experience and capacity may be contributing to their efficiencies. However, this study only focuses on the container market among the three main markets, namely, dry bulk, wet bulk and container.

Originality/value

This study highlights an environmental issue in the shipping industry. While CSCs are operating their cargo efficiently in general, they should also put green initiatives into their business operations for the long-term sustainability.

Details

The International Journal of Logistics Management, vol. 31 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

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