Economic Efficiency and Value Maximization in Banking Firms

Ana Isabel Fernández, Fernando Gascón and Eduardo González

No 2001/11, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG)

Abstract: We study economic efficiency in 142 financial intermediaries from eighteen countries over the period 1989-1998 and the relationship between efficiency, productivity change and shareholders’ wealth maximization. A non-parametric frontier analysis (DEA) is applied to estimate the relative efficiency of commercial banks of different geographical areas. A Malmquist decomposition is then carried out in order to separate efficiency change from technical change. We evaluate the relationship between economic efficiency and wealth maximization. Results show different productivity patterns among three geographical areas (North America, Japan and Europe) over the sample period. The estimates of economic efficiency and productivity changes are consistent with the wealth maximization criterion.

Keywords: Bank Efficiency; Malmquist index; DEA; Value Maximization (search for similar items in EconPapers)
Pages: 36
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.unioviedo.es/oeg/ESP/esp_2001_11.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:oeg:wpaper:2001/11

Access Statistics for this paper

More papers in Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG) Departamento de Economía, Facultad de Economía y Empresa, Universidad de Oviedo, Avenida del Cristo, s/n. 33006 Oviedo - SPAIN. Contact information at EDIRC.
Bibliographic data for series maintained by Luis Orea () and David Roibas ().