Determinants of Allocative, Cost and Scope Efficiencies: A Comparative Analysis of Banks and Insurance Companies in Pakistan

Maha Haroon and Danish Siddiqui

Business Management and Strategy, 2019, vol. 10, issue 2, 285-312

Abstract: The purpose of this research paper is to empirically investigates determinants of allocative, cost and scope efficiencies as well as impact of financial crisis and stock market performance on efficiencies. Pakistan’s banks and insurance companies’ sector were taken for the purpose of comparative analysis. For this objective both Islamic/takaful and conventional sectors were occupied. Twelve years data (2007-2018) of PSX’s banking and insurance sector was taken. Two stage non-parametric efficiency analysis was done, in the first stage, estimation for efficiency scores we used DEA for both sectors. In second phase, efficiency scores are regressed on the selected determinants by Tobit Regression. For measuring stock market performance CASR is calculated. Inadequate efficiency in insurance sector is evidenced against banking sector. Efficiency of takaful firms as new entrants of the market was not good comparatively to conventional insurance firms. Islamic and conventional banks are operated at almost same efficiency level. Performance of stock market has inverse and both (significant and insignificant) relationship with efficiency, means different events and fundamentals don’t affect the performance of sectors that is why efficiencies are not hit by this way. As well as determinants have different relationship with allocative, cost and scope efficiencies scores.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.macrothink.org/journal/index.php/bms/article/download/15903/12423 (application/pdf)
http://www.macrothink.org/journal/index.php/bms/article/view/15903 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mth:bmsmti:v:10:y:2019:i:2:p:285-312

Access Statistics for this article

Business Management and Strategy is currently edited by Jean Lee

More articles in Business Management and Strategy from Macrothink Institute
Bibliographic data for series maintained by Technical Support Office ( this e-mail address is bad, please contact ).