Bank productivity and performance groups: A decomposition approach based upon the Luenberger productivity indicator
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| Title: | Bank productivity and performance groups: A decomposition approach based upon the Luenberger productivity indicator |
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| Authors: | Epure, Mircea1 mircea.epure@uab.cat, Kerstens, Kristiaan2 k.kerstens@ieseg.fr, Prior, Diego1,2 diego.prior@uab.es |
| Source: | European Journal of Operational Research. Jun2011, Vol. 211 Issue 3, p630-641. 12p. |
| Subjects: | Banking industry & economics, Performance, Decomposition method, Savings banks, Strategic planning, Technological innovations, Bank loans, Random variables |
| Abstract: | Abstract: The purpose of this paper is twofold. First, in the framework of the strategic groups’ literature, it analyZes changes in productivity and efficiency of Spanish private and savings banks over an eight-year period (1998–2006). Second, by adapting the decomposition of the Malmquist productivity indices suggested by , it proposes similar components decomposing the Luenberger productivity indicator. Initially, productivity is decomposed into technological and efficiency changes. Thereafter, this efficiency change is decomposed into pure efficiency, scale and congestion changes. Empirical results demonstrate that productivity improvements are partially due to technological innovation. Furthermore, it is shown how the competition between private and savings banks develops in terms of the analyzed productivity and efficiency components. While private banks enjoy better efficiency change, savings banks contribute more to technological progress. Consequently, the Luenberger components are used as cluster analysis inputs. Thus, economic interpretations of the resulting performance groups are made via key differences in productivity components. Finally, following the strategic groups’ literature, supplementary insights are gained by linking these performance groups with banking ratios. [Copyright &y& Elsevier] |
| Copyright of European Journal of Operational Research is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Engineering Source |
| FullText | Text: Availability: 0 |
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| Header | DbId: egs DbLabel: Engineering Source An: 58747046 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Bank productivity and performance groups: A decomposition approach based upon the Luenberger productivity indicator – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Epure%2C+Mircea%22">Epure, Mircea</searchLink><relatesTo>1</relatesTo><i> mircea.epure@uab.cat</i><br /><searchLink fieldCode="AR" term="%22Kerstens%2C+Kristiaan%22">Kerstens, Kristiaan</searchLink><relatesTo>2</relatesTo><i> k.kerstens@ieseg.fr</i><br /><searchLink fieldCode="AR" term="%22Prior%2C+Diego%22">Prior, Diego</searchLink><relatesTo>1,2</relatesTo><i> diego.prior@uab.es</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22European+Journal+of+Operational+Research%22">European Journal of Operational Research</searchLink>. Jun2011, Vol. 211 Issue 3, p630-641. 12p. – Name: Subject Label: Subjects Group: Su Data: <searchLink fieldCode="DE" term="%22Banking+industry+%26+economics%22">Banking industry & economics</searchLink><br /><searchLink fieldCode="DE" term="%22Performance%22">Performance</searchLink><br /><searchLink fieldCode="DE" term="%22Decomposition+method%22">Decomposition method</searchLink><br /><searchLink fieldCode="DE" term="%22Savings+banks%22">Savings banks</searchLink><br /><searchLink fieldCode="DE" term="%22Strategic+planning%22">Strategic planning</searchLink><br /><searchLink fieldCode="DE" term="%22Technological+innovations%22">Technological innovations</searchLink><br /><searchLink fieldCode="DE" term="%22Bank+loans%22">Bank loans</searchLink><br /><searchLink fieldCode="DE" term="%22Random+variables%22">Random variables</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: Abstract: The purpose of this paper is twofold. First, in the framework of the strategic groups’ literature, it analyZes changes in productivity and efficiency of Spanish private and savings banks over an eight-year period (1998–2006). Second, by adapting the decomposition of the Malmquist productivity indices suggested by , it proposes similar components decomposing the Luenberger productivity indicator. Initially, productivity is decomposed into technological and efficiency changes. Thereafter, this efficiency change is decomposed into pure efficiency, scale and congestion changes. Empirical results demonstrate that productivity improvements are partially due to technological innovation. Furthermore, it is shown how the competition between private and savings banks develops in terms of the analyzed productivity and efficiency components. While private banks enjoy better efficiency change, savings banks contribute more to technological progress. Consequently, the Luenberger components are used as cluster analysis inputs. Thus, economic interpretations of the resulting performance groups are made via key differences in productivity components. Finally, following the strategic groups’ literature, supplementary insights are gained by linking these performance groups with banking ratios. [Copyright &y& Elsevier] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of European Journal of Operational Research is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1016/j.ejor.2011.01.041 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 12 StartPage: 630 Subjects: – SubjectFull: Banking industry & economics Type: general – SubjectFull: Performance Type: general – SubjectFull: Decomposition method Type: general – SubjectFull: Savings banks Type: general – SubjectFull: Strategic planning Type: general – SubjectFull: Technological innovations Type: general – SubjectFull: Bank loans Type: general – SubjectFull: Random variables Type: general Titles: – TitleFull: Bank productivity and performance groups: A decomposition approach based upon the Luenberger productivity indicator Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Epure, Mircea – PersonEntity: Name: NameFull: Kerstens, Kristiaan – PersonEntity: Name: NameFull: Prior, Diego IsPartOfRelationships: – BibEntity: Dates: – D: 16 M: 06 Text: Jun2011 Type: published Y: 2011 Identifiers: – Type: issn-print Value: 03772217 Numbering: – Type: volume Value: 211 – Type: issue Value: 3 Titles: – TitleFull: European Journal of Operational Research Type: main |
| ResultId | 1 |
