Bank performance and its determinants in Korea

Jeong Yeon Lee and Doyeon Kim

Japan and the World Economy, 2013, vol. 27, issue C, 83-94

Abstract: In this study we develop a measure of bank performance based on the Malmquist index approach. This measure supplements existing financial ratios such as ROA and ROE by addressing some of limitations of these ratios. In our empirical investigation building upon the Malmquist index measure as well as the profitability ratios, we never find convincing evidence of economies of scale present in the Korean banking sector. It also appears that a certain type of ownership such as foreign international banks has the potential to significantly improve bank performance while the management control of government or foreign buyout funds has mainly unfavorable effects on bank performance.

Keywords: Bank; Profitability; Economies of scale; Ownership structure; Malmquist index (search for similar items in EconPapers)
JEL-codes: G21 L2 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:27:y:2013:i:c:p:83-94

DOI: 10.1016/j.japwor.2013.05.001

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