EconPapers    
Economics at your fingertips  
 

Decomposing total factor productivity while treating for misspecification

Emmanuel Mamatzakis and Efthymios Tsionas
Additional contact information
Efthymios Tsionas: Economic Department, Lancaster University Management School, UK

No 18, Management Working Papers from Birkbeck Department of Management

Abstract: Decomposing firm performance has been challenging for some time. Yet the importance of accurately measuring performance is unequivocal. We propose a flexible functional of total factor productivity (TFP) that measures firm performance and treats misspecification. We argue that measuring bank productivity at global level, which is provided by our model based on bank micro-foundations, is better suited than other measures. Our results suggest that there is not much convergence in TFP across the world, though the technology has positively contributed to bank TFP growth. However, nonperforming loans have had the opposite effect. Furthermore, we show that bank risk-taking and raising capital by equity are negatively related to TFP growth; instead, liquidity has a positive impact.

Pages: 32 pages
Date: 2020-03, Revised 2021-02
New Economics Papers: this item is included in nep-eff and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published on Birkbeck Deparment of Management web site, March 2020, pages 1-32

Downloads: (external link)
https://eprints.bbk.ac.uk/id/eprint/31157/1/31157.pdf (application/pdf)

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:img:manwps:18

Access Statistics for this paper

More papers in Management Working Papers from Birkbeck Department of Management Contact information at EDIRC.
Bibliographic data for series maintained by Luca Andriani ().

 
Page updated 2021-07-25
Handle: RePEc:img:manwps:18