The risk‐adjusted profit productivity change in Chinese banks: A comparative analysis of the different type banks

Xiang Chen, Xuping Zhang, Yujia Wang and Hairui Jia

Managerial and Decision Economics, 2022, vol. 43, issue 2, 523-532

Abstract: This study incorporates a risk factor into the framework of the profit‐oriented productivity change of Juo et al. (2015, https://doi.org/10.1016/j.omega.2015.04.013) to introduce a risk‐adjusted profit productivity measure. We further decompose the measure into changes in allocative inefficiency, technical inefficiency, technology, and price effects. In order to compare profit performance and its sources in Chinese banks, we employ 43 Chinese banks from 2015 to 2019 as the sample. We find that all Chinese banks have a significant improvement in profit productivity, and their profit loss mainly results from technical decline. State‐owned banks have better profit efficiency, but Chinese city banks have the highest profit productivity growth. The main contribution is that ownership cannot affect profit productivity but can function in production‐related components, namely, changes in technical inefficiency and technology.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.3399

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:wly:mgtdec:v:43:y:2022:i:2:p:523-532

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().