The evaluation of East Asian banks by considering economic and political conditions as well as country risk
Alireza Tamadonnejad (),
Mariani Abdul-Majid () and
Additional contact information
Alireza Tamadonnejad: Universiti Kebangsaan Malaysia
Aisyah Abdul-Rahman: Universiti Kebangsaan Malaysia
Mansor Jusoh: Universiti Kebangsaan Malaysia
International Economics and Economic Policy, 2017, vol. 14, issue 1, No 2, 27-41
Abstract This paper evaluates the performance of East Asian banks during the period of 2000–2010 by controlling country-specific conditions comprehensively. Particularly, it seeks to show that country-specific conditions are significant factors in estimating the common frontier by which the performance of all banks are compared. Thus, disregarding political conditions, regulatory environments, and country risk would lead to inaccurate efficiency scores because of the inaccurate common frontier. Following this further, an inaccurate measure of bank performance can hardly reveal bank problems before turning into a crisis. Our results confirm the significant impact of country-specific conditions on the common frontier, and hence bank efficiencies. The findings suggest that researchers, bank managers, and regulators also consider other factors other than economic conditions in their evaluations and decisions.
Keywords: Country risk; East Asian banks; Efficiency; Output distance function; Political stability (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10368-015-0318-y Abstract (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:kap:iecepo:v:14:y:2017:i:1:d:10.1007_s10368-015-0318-y
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10368/PS2
Access Statistics for this article
International Economics and Economic Policy is currently edited by Paul J.J. Welfens, Holger C. Wolf, Christian Pierdzioch and Christian Richter
More articles in International Economics and Economic Policy from Springer
Bibliographic data for series maintained by Sonal Shukla ().