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Article
Publication date: 6 April 2012

Fadzlan Sufian

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

China Finance Review International, vol. 2 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

Open Access
Article
Publication date: 16 November 2023

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

Forestry Economics Review, vol. 5 no. 2
Type: Research Article
ISSN: 2631-3030

Keywords

Open Access
Book part
Publication date: 4 May 2018

Bakhtiar, Defi Irwansyah and Zulmiardi

Purpose – This study aims to determine the results of productivity index, profitability and improvement of company prices and to understand the relationship between partial input…

Abstract

Purpose – This study aims to determine the results of productivity index, profitability and improvement of company prices and to understand the relationship between partial input factors and productivity, profitability, and price fixing.

Design/Methodology/Approach – In this work, the productivity at the palm oil factory PT Sayaukath Sejahtera was measured and evaluated by using The American Productivity Center (APC) model approach.

Findings/Results – The results showed that each index that has been analyzed has a 5.143% decrease in the productivity index per year with a profitability equal to 0.286% per year and an increase in the price improvement index of 5.143% per year. Thus, it is concluded that from each index that has been analyzed, there is a decrease in the productivity index and profitability per year and there is an annual increase in the price improvement index.

Research Limitations/Implications (if applicable)

Practical Implications (if applicable)

Originality/Value

Article
Publication date: 1 January 2005

B.S. Sahay

To discuss the concept of productivity in the service sector and to present a multifactor productivity measurement model for a service organisation.

8763

Abstract

Purpose

To discuss the concept of productivity in the service sector and to present a multifactor productivity measurement model for a service organisation.

Design/methodology/approach

Employs a case study approach, featuring a service organisation which provides a range of engineering services to different industries. The model focuses on objectives of the organization and overall results rather than the individual departmental activities.

Findings

The case study shows how different factors of static, dynamic and development parameters can be taken into account to calculate the total productivity of an organisation.

Research limitations/implications

The case study organization represents only one industry sector. However, it is claimed that the generic model for productivity measurement described may be used by any type of service organisation. Warns that it is not always possible to assess the nature and extent of bias introduced by the measures selected and the weightages assigned to these measures.

Practical implications

The model can determine the gap between what is actually accomplished and what it is possible to accomplish (unlike subjective targeting), providing the potential for improvement.

Originality/value

The model presented is important in that it attempts to measure unmeasurable factors.

Details

International Journal of Productivity and Performance Management, vol. 54 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 April 2004

Geeta Krishnasamy, Alfieya Hanuum Ridzwa and Vignesen Perumal

The nature and extent of productivity change of ten commercial banks in Malaysia is analysed over the period 2000‐2001. Utilising non‐parametric methodology, Data Envelopment…

2931

Abstract

The nature and extent of productivity change of ten commercial banks in Malaysia is analysed over the period 2000‐2001. Utilising non‐parametric methodology, Data Envelopment Analysis (DEA) and Malmquist total factor productivity index (MPI), individual bank efficiency and productivity changes which took place within this period is estimated. The MPI calculated within the framework of DEA further decompose productivity growth into technical efficiency change and technological change. The results from this analysis indicate that total factor productivity increased in all eight banks except for EON, which remain the same while PBB, recorded a decrease in productivity. AFB recorded the highest growth in total factor productivity. The growth in productivity is attributed to technological change rather than technical efficiency change.

Details

Managerial Finance, vol. 30 no. 4
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 May 2003

Liang‐Hsuan Chen, Shu‐Yi Liaw and Tzai‐Zang Lee

Manufacturing firms are always faced with the problem of promoting operational performance and labor‐force management. The utilization of human resources is closely correlated…

3994

Abstract

Manufacturing firms are always faced with the problem of promoting operational performance and labor‐force management. The utilization of human resources is closely correlated with operations and production performance. This study investigates the correlation between human resource management (HRM) and business performance of large‐scale manufacturing firms in Taiwan. First, 16 subjects of HRM are designed to survey the importance level and achievement level of HRM by the sample firms. Productivity indices are also defined to measure business performance. Based on the survey, four critical HRM factors including 12 subjects are extracted by factor analysis. The difference between importance level and achievement level of subjects contained in each factor is examined. Furthermore, considering importance and achievement levels of HRM as features, fuzzy clustering analysis is employed to categorize the firms into four patterns. With various HRM characteristics, each pattern has different business performance in terms of productivity. Using a pattern approach, these findings can aid the firms in each pattern to improve their productivity by improving their HRM strategies.

Details

International Journal of Manpower, vol. 24 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 October 2001

Liang‐Hsuan Chen, Shu‐Yi Liaw and Yeong Shin Chen

Since a firm’s management performance can be evaluated in terms of financial ratios, efficient management using financial factors is proposed as the key element for upgrading a…

1926

Abstract

Since a firm’s management performance can be evaluated in terms of financial ratios, efficient management using financial factors is proposed as the key element for upgrading a firm’s productivity. Investigates productivity in terms of certain financial factors of large‐scale manufacturing firms in Taiwan. First determines several influential financial factors using factor analysis. Based on these factors, employs fuzzy clustering approaches to categorize the manufacturing firms into several patterns with distinct characteristics of financial factors. Using the characteristics of productivity and financial factors for each pattern, makes two kinds of analysis, and proposes some suggestions to improve the firms’ productivity.

Details

Industrial Management & Data Systems, vol. 101 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 3 June 2019

Anatoliy G. Goncharuk

The purpose of this paper is to find how much the efficiency of winemaking has changed since the crisis of 2008 and what are the main determinants of winemaking performance in the…

Abstract

Purpose

The purpose of this paper is to find how much the efficiency of winemaking has changed since the crisis of 2008 and what are the main determinants of winemaking performance in the recent decade.

Design/methodology/approach

This study applied a three-stage approach to explore productivity, efficiency and profitability changes. At the first stage of the empirical study, the Malmquist Total Factor Productivity indexes based on the data envelopment analysis are used to reveal tendencies of wineries’ productivity and the reasons for its changes. At the second stage, productivity indexes were used to find out the main exogenous and endogenous factors. At the final stage, the profitability change after the crisis in the context of the wine types and a size of wineries is explored.

Findings

The main trends and factors of winemaking performance after 2008 were defined. It was found that a crisis in winemaking in Ukraine has been going on for almost decade with the greatest failure in 2014 that led to the falling overall efficiency. This failure was caused mainly by the military and political factors regarding the annexation of Crimea by Russia, the changes in consumer behaviour with a tendency to reduce overall alcohol consumption, and the government regulation increased excise duties on wines. Despite the efficiency crisis in Ukrainian winemaking, the positive contribution of technological progress provides its productivity growth. The small- and medium-sized enterprises in winemaking have a high resistance to the crisis and fiscal pressure. Despite it losing a half of value-added and being unprofitable, the small wine business has managed to increase the labour and capital productivities and overtake big wine business on these indicators.

Research limitations/implications

This study is limited to one country and the relatively small sample of the wineries. However, it can be a starting point for a series of research on the development of anti-crisis winemaking strategy.

Practical implications

The findings of the study can be helpful for the Ukrainian Government to prevent crisis continuation in the winemaking sector. This case may be instructive for other countries, faced with a protracted crisis of efficiency in winemaking.

Originality/value

This is the first study that examines the winemaking performance and its factors after the world financial crisis, based on the case of Ukraine.

Details

British Food Journal, vol. 121 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

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 showing…

1132

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: 7 January 2014

Supran Kumar Sharma and Raina Dalip

The purpose of this paper is to attempt to measure the performance of the Indian banking sector in terms of efficiency and productivity levels and their determinants during the…

1178

Abstract

Purpose

The purpose of this paper is to attempt to measure the performance of the Indian banking sector in terms of efficiency and productivity levels and their determinants during the post-reform period.

Design/methodology/approach

The present study is a novel attempt as it has used pooled data for a duration of 15 years (i.e. 1997/1998-2010/2011) from 59 selected banks for estimating the Hicks-Moorsteen (HM) total factor productivity (TFP) index.

Findings

Poor technical efficiency has experienced with scale efficiency change exerting dominant factors; whereas relatively better productivity growth has been experienced by the banks with major contributions from technical change components. The study found relatively underestimated efficiency and productivity levels by traditional data envelopment analysis-based Malmquist index. Additionally, the study brings into account the results for external and environmental determining factors contributing to the TFP growth.

Originality/value

Using HMTFP indices has helped to eliminate certain drawbacks of data envelopment and provided the more elaborative decomposition of productivity growth along with their components so as to have lucid and multidimensional insights about the performance of the Indian banking industry after the initiation of financial reforms.

Details

International Journal of Productivity and Performance Management, vol. 63 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

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