Managers and efficiency in banking

Karlo Kauko

No 11/2007, Bank of Finland Research Discussion Papers from Bank of Finland

Abstract: This paper presents evidence on the impact of managers on cost efficiency in banking. Stochastic frontier analysis is applied to a unique Finnish data set. The paper finds that manager age and education have strong yet complicated effects. University education enhances efficiency if the manager is running a large bank. Managing director changes are systematically followed by efficiency changes. Manager retirement typically causes an efficiency improvement, whereas other manager changes can either improve or weaken efficiency.

Keywords: efficiency; banking; managers (search for similar items in EconPapers)
JEL-codes: G21 L25 M19 (search for similar items in EconPapers)
Date: 2007
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https://www.econstor.eu/bitstream/10419/212069/1/bof-rdp2007-011.pdf (application/pdf)

Related works:
Journal Article: Managers and efficiency in banking (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofrdp:rdp2007_011

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