The Relative Cost Efficiency of Stock versus Mutual Thrifts: A Bayesian Approach
James M. Sfiridis and
The Financial Review, 2004, vol. 39, issue 1, 153-179
The relative cost efficiency of the mutual versus stock forms of ownership for thrifts has been a relevant issue in an era of deregulation and competition in the financial services industry. In this study, Bayesian-based Markov chain Monte Carlo (MCMC) resampling methods are used to solve a stochastic cost frontier model and effectively determine cost efficiencies for the stock and mutual thrift groups. We find a statistically significant difference between both the cost frontiers and the cost efficiencies of the two groups, with the stock group operating at the lower-cost point. Agency problems explain a significant portion of the cost efficiency difference. Capital structure differences, though not helping to explain differences in cost efficiency, do help to explain differences in cost structure and managerial attitudes toward risk. Copyright 2004 by the Eastern Finance Association.
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2004&part=null link to full text (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:39:y:2004:i:1:p:153-179
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516
Access Statistics for this article
The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan
More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().