Search results
1 – 10 of 728Muhammad 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 showing…
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
Keywords
This chapter provides a survey of alternative methodologies for measuring and comparing productivity and efficiency of airlines, and reviews representative empirical studies. The…
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.
Details
Keywords
– 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
Keywords
Haotian Wu, Jiancheng Chen, Wanting Bai and Yiliang Fang
The aim of this article is to research on forestry green total factor productivity and explore the impact of financial support on forestry green total factor productivity.
Abstract
Purpose
The aim of this article is to research on forestry green total factor productivity and explore the impact of financial support on forestry green total factor productivity.
Design/methodology/approach
The methods used in this study are super efficiency SBM model of undesired output and empirical model. SBM model is a kind of Data Envelopment Analysis (DEA). The SBM model with non-expected outputs (slacks-based measure) can be used to deal with the problem of efficiency measurement with multiple input and output variables and can be used to analyze the efficiency of green development of forestry economy.
Findings
First, the overall green total factor productivity of the authors’ country's forestry has shown a trend of first decline and then an increase from 2008 to 2018, and there are significant spatiotemporal differences; second, financial support has a significant positive impact on forestry green total factor productivity; third, environmental regulation has a significant threshold effect in the process of financial support on forestry green total factor productivity, and the role of financial support shows a trend of first increasing and then decreasing.
Originality/value
Secondly, taking the data of 30 provinces and cities in the authors’ country from 2008 to 2018 as the research object, using the super-efficiency SBM-Malmquist index to measure the country's forestry green total factor productivity and analyze its temporal and spatial changes; finally, a dynamic panel model was established to explore the impact of financial support on forestry green total factors quantitative impact on productivity, and adding environmental regulation as a threshold variable to establish a dynamic threshold regression, and found that financial support has a nonlinear impact on forestry green total factor productivity.
Details
Keywords
The purpose of this paper is to provide new empirical evidence on the impact of credit risk on China banks' total factor productivity.
Abstract
Purpose
The purpose of this paper is to provide new empirical evidence on the impact of credit risk on China banks' total factor productivity.
Design/methodology/approach
The paper employs the Malmquist Productivity Index (MPI) which allows for the examination of five different indices: total factor productivity change (TFPCH); technological change (TECHCH); efficiency change (EFFCH); pure technical efficiency change (PEFFCH); and scale efficiency change (SECH) indices.
Findings
The empirical findings indicate that the State Owned Commercial Banks (SOCB), Joint Stock Commercial Banks (JSCB), and City Commercial Banks (CCB) have exhibited lower TFPCH levels with the inclusion of risk factor. It was found that the JSCB and CCB have exhibited lower TFPCH due to TECHCH, while the SOCB have exhibited lower TFPCH due to EFFCH. The empirical findings suggest that the inclusion of credit risk factor has resulted in a higher JSCB EFFCH levels. On the other hand, the SOCB and CCB have exhibited a lower EFFCH levels due to SECH and PEFFCH, respectively.
Research limitations/implications
The results clearly highlight the importance of credit risk and lending quality in determining the total factor productivity change of banks operating in the China banking sector. The author demonstrates that the inclusion of credit risk factor has resulted in a lower TFPCH level of all banks operating in the China banking sector. Thus, excluding the credit risk factor from the analysis on the China banking sector may potentially bias the result upwards.
Practical implications
In an environment of heavy government influence over the lending process, a large proportion of loans extended by Chinese banks over the years have gone bad. Policymakers should prevent the flow of new non‐performing loans by separating bad clients from banks that are being restructured and recapitalized in the reform of the banking sector.
Originality/value
By employing the Malmquist Productivity Index (MPI), the present paper contributes to the existing literature by examining, for the first time, the impact of credit risk on China banks' total factor productivity. To the best of the author's knowledge, this type of analysis is completely missing from the literature in regard to the China banking sector.
Details
Keywords
Slađana Savović and Predrag Mimović
The purpose of this paper is to explore the effects of cross-border acquisitions on the efficiency and productivity of acquired companies in the cement industry in the context of…
Abstract
Purpose
The purpose of this paper is to explore the effects of cross-border acquisitions on the efficiency and productivity of acquired companies in the cement industry in the context of a transitional economy.
Design/methodology/approach
The Data Envelopment Analysis (DEA) and Malmquist Productivity Index were used to assess the efficiency and productivity of the acquired companies over the period 2000–2018. DEA and Malmquist index are combined with bootstrapping to perform succinct statistical inferences for determining the accuracy of results. The study assesses partial efficiency and productivity of three inputs: material, capital and labour, as well as the total factor efficiency and productivity of the acquired companies in the short and long term after the acquisitions.
Findings
The research results suggest that efficiency of material, efficiency of labour and the total factor efficiency of the acquired companies are higher after the acquisitions than before, while efficiency of capital is lower. In addition, the results show that the acquisitions had a positive impact on total factor productivity of the acquired companies.
Practical implications
The results of this study have practical implications for managers, especially for policy-makers and industry analysts in deciding whether to encourage or discourage cross-border acquisitions in transitional economies.
Originality/value
The study contributes to a better understanding of the impact of cross-border acquisitions on efficiency and productivity of acquired companies in the manufacturing industry. Research in transitional economies related to subject matter is limited, and this study is the first empirical investigation of the effect of cross-border acquisitions on the efficiency and productivity in the cement industry in Serbia by applying the Data Envelopment Analysis.
Details
Keywords
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
Keywords
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 analysis…
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
Keywords
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
Keywords
Charles Von Gilsa, Daniel Pacheco Lacerda, Luis Felipe Riehs Camargo, Iberê Guarani Souza and Ricardo Augusto Cassel
The purpose of this paper is to longitudinally assess the technical efficiency and productivity, considering investment projects and technological change, in a second-generation…
Abstract
Purpose
The purpose of this paper is to longitudinally assess the technical efficiency and productivity, considering investment projects and technological change, in a second-generation petrochemical company.
Design/methodology/approach
The study uses data envelopment analysis (DEA) together with the Malmquist index to measure efficiency during the analysis periods. The working method consists of four main phases, namely development of the conceptual model, construction of the mathematical model, application of model to the case, and analysis of the results. The study utilizes a quantitative approach with descriptive goals seeking to evaluate the impacts of technical changes on the operational efficiency and productivity of the production process.
Findings
The use of DEA associated with the Malmquist index proved to be viable for analyzing a single company and identifying efficiency improvements, as well as the impacts of the learning process and the implementation of improvement projects. However, the results of the improvement projects and learning process were not representative and had no statistical significance on the actual change in efficiency of the company during the periods analyzed. For the case in question, the learning process and continuous improvement were not observed during all study periods.
Practical implications
The proposition that the improvement projects and investments implemented increased the efficiency of the company was rejected. Hence, with this work, it was possible to determine that the company unnecessarily invested resources in projects to increase efficiency. Furthermore, the company could have explored more internal resources before making significant investments in increased efficiency.
Originality/value
As for the value of this research in the theoretical and academic scope, this paper advances knowledge on the application of DEA because it proposes to establish an internal reference benchmarking for comparison. The literature contains few studies that analyze organizations using continuous processes, such as petrochemical processes, in longitudinal studies as a function of time, especially with the use of DEA.
Details