Banks' Types of Ownership and Efficiency: Evidence from Indonesia

Rasyad Parinduri and Yohanes Riyanto

No 2009-04, NUBS Malaysia Campus Research Paper Series from Nottingham University Business School Malaysia Campus

Abstract: We examine the relationship between banks' types of ownership and banks' efficiency using Greene's "true" panel data stochastic frontier model. We find that, even after taking unobserved heterogeneity more properly into account, state-owned banks in Indonesia are the least efficient banks and joint-venture banks are the most efficient ones.

Keywords: Banking; Ownership types; Efficiency; Stochastic frontier (search for similar items in EconPapers)
JEL-codes: C23 G21 (search for similar items in EconPapers)
Date: 2009-04
New Economics Papers: this item is included in nep-ban, nep-eff and nep-sea
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Related works:
Journal Article: Bank Ownership and Efficiency in the Aftermath of Financial Crises: Evidence from Indonesia (2014)
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