Search results

1 – 10 of 636
Article
Publication date: 9 February 2015

Muhammad Abbas, Rayan S Hammad, Mohamed Fathy Elshahat and Toseef Azid

This paper aims to compute the Malmquist Index of Islamic and conventional banks to compare their performance in the sample period of 2005-2009. Islamic banks have been…

1091

Abstract

Purpose

This paper aims to compute the Malmquist Index of Islamic and conventional banks to compare their performance in the sample period of 2005-2009. Islamic banks have been showing tremendous growth throughout the world in recent past. Their progress is exceptional in Islamic countries on account of patronization for religious reasons. There existed vacuum in research of their productivity change over the years.

Design/methodology/approach

This study tries to apply the Malmquist Index. The Malmquist Total Factor Productivity Index has been further divided into Efficiency Change Index, Technological Change Index, Pure Efficiency Change Index and Scale Efficiency Change Index to obtain an insight about the reasons for the change in productivity.

Findings

Results indicate that the productivity of Islamic banks decreased in 2007 but it increased in 2008 to 2009. Islamic banks had higher productivity growth from 2005 to 2006, but they experienced lower growth in subsequent years as compared to their conventional counterparts.

Research limitations/implications

Data were not available before 2005 in Pakistan.

Practical implications

This study is helpful for the investors and bankers for formulating the future policy.

Social implications

This study also provides a guideline for establishing the ethical financial institutions.

Originality/value

This is an original attempt.

Details

Humanomics, vol. 31 no. 1
Type: Research Article
ISSN: 0828-8666

Keywords

Article
Publication date: 16 November 2015

Raéf Bahrini

– The purpose of this paper is to analyze the total factor productivity (TFP)[1] change and to investigate its determinants in the case of MENA Islamic banks.

Abstract

Purpose

The purpose of this paper is to analyze the total factor productivity (TFP)[1] change and to investigate its determinants in the case of MENA Islamic banks.

Design/methodology/approach

In the first stage, bootstrapped Malmquist index approach is used to provide a robust analysis of the changes in the productivity of 33 Islamic banks operating in 10 MENA countries during the period 2006-2011. In the second stage, panel data models are used to investigate the determinants of TFP change.

Findings

The results of the first stage show that Gulf Cooperation Council (GCC) banks have known a productivity decline between 2006 and 2011 due to technical regress and scale inefficiency. In contrast, non-GCC banks have improved their productivity by benefiting from scale economies. The results of the second stage show that the productivity growth of MENA Islamic banks was mainly determined by bank-specific factors and that TFP indices decreased in the period of global financial crisis.

Practical implications

This paper provides relevant recommendations for improving the productivity of Islamic banks operating in the MENA countries.

Originality/value

This paper attempts to fill a demanding gap in the literature by examining productivity change and investigating its determinants using cross-country data of MENA Islamic banks. In addition, it is one of the few studies that have applied the bootstrapped Malmquist index approach in the case of Islamic banking.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 8 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 31 December 2006

Hun-Koo Ha, Sang-Won Lee and Zhao Cheng

The objectives of this paper are to estimate the annual Malmquist TFP(total factor productivity) index of Korea and China’s road freight transport with DEA(data envelope…

Abstract

The objectives of this paper are to estimate the annual Malmquist TFP(total factor productivity) index of Korea and China’s road freight transport with DEA(data envelope analysis) and to decompose the index into technical efficiency change and technology change. In the process of the estimation, we used labor, capital, and fuel as input factors and ton-km of road freight transport as output factor. The panel data of Korea and China’s road freight transport industry from 1985 to 2004 are used. The results of the analysis show several points. First, there was no significant improvement in China’s TFP growth before 1997, but there was continuous growth in TFP since 1997 because of constantly increasing domestic freight transport demand. Second, there was downward trend in Korea’s TFP, especially there was a large reduction of productivity in 1998 because of the huge reduction of road freight transport demand during the period of the economic crisis. Third, the technology improvements play a significant role in the TFP growth and the technical efficiency had negative effects on the TFP growth of Korea. However, the technology improvements as well as the technical efficiency had positive effects on the TFP growth of China’s road freight transport industry.

Details

Journal of International Logistics and Trade, vol. 4 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 21 June 2019

Ashiq Mohd Ilyas and S. Rajasekaran

The purpose of this paper is to analyse the performance of the Indian non-life (general) insurance sector in terms of efficiency, productivity and returns-to-scale…

Abstract

Purpose

The purpose of this paper is to analyse the performance of the Indian non-life (general) insurance sector in terms of efficiency, productivity and returns-to-scale economies. In addition to this, it identifies the determinants of efficiency.

Design/methodology/approach

This study employs a two-stage data envelopment analysis (DEA) bootstrap approach to estimate the level and determinants of efficiency. In the first stage, the DEA bootstrap approach is employed to estimate bias-corrected efficiency scores. In the second stage, the truncated bootstrapped regression is used to identify the effect of firm-level characteristics on the efficiency of insurers. Moreover, the bootstrapped Malmquist index is used to examine the productivity growth over the observation period 2005–2016.

Findings

The bootstrapped DEA results show that the Indian non-life insurance sector is moderately technical, scale, cost and allocative efficient, and there is a large opportunity for improvement. Moreover, the results reveal that the public insurers are more cost efficient than the private insurers. It is also evident that all the insurers irrespective of size and ownership type are operating under increasing returns to scale. Malmquist index results divulge an improvement in productivity of insurers, which is attributable to the employment of the best available technology. Bootstrapped DEA and bootstrapped Malmquist index results also show that the global financial crisis of 2008 has not severely affected the efficiency and productivity of the Indian non-life insurance sector. The truncated regression results spell that size and reinsurance have a statistically significant negative relationship with efficiency. It also shows a statistically significant positive age–efficiency relationship.

Practical implications

The results hold practical implications for the regulators, policy makers, practitioners and decision makers of the Indian non-life insurance companies.

Originality/value

This study is the first of its kind that comprehensively investigates different types of robust efficiency measures, determinants of efficiency, productivity growth and returns-to-scale economies in the Indian non-life insurance market for an extended time period.

Details

Benchmarking: An International Journal, vol. 26 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 23 May 2019

Sarah Beatson Nartey, Kofi A. Osei and Emmanuel Sarpong-Kumankoma

The purpose of this paper is to provide a total factor productivity index for the African banking industry. It also investigates the impact of some internal and external…

Abstract

Purpose

The purpose of this paper is to provide a total factor productivity index for the African banking industry. It also investigates the impact of some internal and external determinants affecting bank productivity.

Design/methodology/approach

The biennial Malmquist productivity index and various regression models (ordinary least squares, Tobit and truncated bootstrapped regression) are employed in analyzing data from 120 banks in 24 African countries from 2007 to 2012.

Findings

The results indicate a general decline in productivity of banks in Africa, largely due to inadequate technological progress. State banks are found to be more productive than foreign and private banks. The regression analyses showed that non-executive directors, leverage, management quality, credit risk, competition and exchange rate have significant impact on bank productivity, but ownership and CEO-duality do not.

Practical implications

The results have implications for management of banks, governments and regulators. It shows the need for policy and investments that improve state-of-the art technology. The findings also seem to suggest poor management practices in input usage, especially in operational management, as well as costs emanating from non-interest sources. Bank managers need to address these deficiencies to improve productivity in African banking markets.

Originality/value

A major contribution of this paper is the productivity index provided for the African banking industry. This study is also the first to apply the biennial Malmquist to analyze productivity in the African banking industry.

Details

International Journal of Productivity and Performance Management, vol. 69 no. 9
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 September 2002

Milind Sathye

Gives an overview of the Australian banking industry, reviews relevant research and analyses productivity changes 1995‐1999 in a panel of 17 banks to assess the effects of…

1191

Abstract

Gives an overview of the Australian banking industry, reviews relevant research and analyses productivity changes 1995‐1999 in a panel of 17 banks to assess the effects of deregulation and the reforms introduced by the Wallis report (1997). Explains the methodology (Malmquist indices calculated by data envelopment analysis) and presents the results, which show a decline of 3.1 per cent in technical efficiency over the period and of 3.5 per cent in the total factor productivity index, although there was an annual productivity growth rate of 1.3 per cent. Discusses the underlying reasons for this, compares productivity changes in individual banks and finds that size makes no difference. Considers the implications for policy makers, describes the industry as having a “limit of deregulation” syndrome and believes that further productivity gains depend on advances in technology.

Details

Managerial Finance, vol. 28 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 14 October 2019

Mohammad Alsharif, Annuar Md. Nassir, Fakarudin Kamarudin and M.A. Zariyawati

This study aims to analyse Gulf Cooperation Council (GCC) Islamic and conventional banks’ productivity and to investigate the impact of Basel III on their productivity

Abstract

Purpose

This study aims to analyse Gulf Cooperation Council (GCC) Islamic and conventional banks’ productivity and to investigate the impact of Basel III on their productivity change. This study is conducted on 73 GCC banks (45 conventional and 28 Islamic) over the period of 2005-2015.

Design/methodology/approach

This study uses the data envelopment analysis-type Malmquist productivity change index and its component indexes to obtain a deep insight into the source of productivity change.

Findings

The results show that Islamic banks are less productive than their conventional counterparts. Also, the results indicate that Basel III accord has impeded the GCC banks’ productivity and this negative effect is larger on Islamic banks. However, there is scale efficiency progress in the past years that offsets the production frontier deterioration, which leads to stagnation in total productivity change for both banks.

Originality/value

This study differs from the previous GCC banks’ productivity studies in several ways. Firstly, it covers a recent period that includes major events such as the global crisis and focuses on the influence of Basel III accord on GCC banks’ productivity. Secondly, as opposed to the previous studies, this study will estimate the GCC banks’ productivity index and its components based on separate frontiers for Islamic and conventional banks that will ensure the homogeneity in the sample and the robustness of the results. Thirdly, this study uses a combination of parametric and non-parametric tests to confirm and check the robustness of the findings. Lastly, to the best of the knowledge of the authors, this is the first study that tries to analyse the GCC banking sector productivity around the new Basel III announcement.

Details

Journal of Islamic Accounting and Business Research, vol. 10 no. 5
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 3 October 2016

Tesfatsion Sahlu Desta

This paper aims to examine whether the African commercial banks selected as the best African banks by Global Finance Magazine really are the best.

Abstract

Purpose

This paper aims to examine whether the African commercial banks selected as the best African banks by Global Finance Magazine really are the best.

Design/methodology/approach

Panel data envelopment analysis (DEA) was used, as well as the Malmquist total factor productivity index, to distinguish productive banks from unproductive banks. Nineteen commercial banks were selected from the 30 best African banks as identified by the Global Finance Magazine.

Findings

Of the 19 banks, five were found to be unproductive. Bank productivity was attributed mainly to technological change, and different methods marked different results, for example, the regional winner bank (Standard Bank of South Africa) selected by Global Finance Magazine ranked ninth in this study, whereas the Bank Windhoek Limited, Namibia, ranked first.

Practical implications

The study confirms the applicability of DEA for the banking industry. The model shows variability among the banks’ efficiency and productivity and provides different results to the Global Finance Magazine’s best bank selection. For example, the Standard Bank of South Africa, which is selected as the regional winner, is now ranked ninth under the DEA Malmquist’s total factor productivity.

Originality/value

The study shows that the DEA model can be applied not only for analysing the firm’s efficiency but also for objective rating, ranking and selecting best banks.

Details

Meditari Accountancy Research, vol. 24 no. 4
Type: Research Article
ISSN: 2049-372X

Keywords

Book part
Publication date: 31 May 2016

Chunyan Yu

This chapter provides a survey of alternative methodologies for measuring and comparing productivity and efficiency of airlines, and reviews representative empirical…

Abstract

This chapter provides a survey of alternative methodologies for measuring and comparing productivity and efficiency of airlines, and reviews representative empirical studies. The survey shows the apparent shift from index procedures and traditional OLS estimation of production and cost functions to stochastic frontier methods and Data Envelopment Analysis (DEA) methods over the past three decades. Most of the airline productivity and efficiency studies over the last decade adopt some variant of DEA methods. Researchers in the 1980s and 1990s were mostly interested in the effects of deregulation and liberalization on airline productivity and efficiency as well as the effects of ownership and governance structure. Since the 2000s, however, studies tend to focus on how business models and management strategies affect the performance of airlines. Environmental efficiency now becomes an important area of airline productivity and efficiency studies, focusing on CO2 emission as a negative or undesirable output. Despite the fact that quality of service is an important aspect of airline business, limited attempts have been made to incorporate quality of service in productivity and efficiency analysis.

Article
Publication date: 17 July 2017

Xiancun Hu and Chunlu Liu

The purpose of this paper is to present an approach for productivity measurement that considers both construction growth and carbon reduction.

Abstract

Purpose

The purpose of this paper is to present an approach for productivity measurement that considers both construction growth and carbon reduction.

Design/methodology/approach

The approach applied is a sequential Malmquist-Luenberger productivity analysis based on a directional distance function and sequential benchmark technology using the data envelopment analysis (DEA) technique. The sequential Malmquist-Luenberger productivity change index is decomposed into pure technical efficiency, scale efficiency, and technological change indices, in order to investigate the driving forces for productivity change.

Findings

The construction industries of the Australian states and territories were selected implement the new approach. The results indicate that construction growth and carbon reduction can be achieved simultaneously through the learning of techniques from benchmarks.

Practical implications

Current research on total factor productivity (TFP) in construction generally neglects carbon emissions. This does not accurately depict the nature of construction and therefore yields biased estimation results. TFP measurement should consider carbon reduction, which is beneficial for policymakers to promote sustainable productivity development in the construction industry.

Originality/value

The approach developed here is generic and enhances productivity and DEA research levels in construction. This research can be used to formulate policies for evaluating performance in worldwide construction projects, organizations and industries by considering undesirable outputs and desirable outputs simultaneously, and for promoting sustainable development in construction by identifying competitiveness factors.

Details

Engineering, Construction and Architectural Management, vol. 24 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

1 – 10 of 636