Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5086168 | Japan and the World Economy | 2013 | 12 Pages |
Abstract
In this study we develop a measure of bank performance based on the Malmquist index approach. This measure supplements existing financial ratios such as ROA and ROE by addressing some of limitations of these ratios. In our empirical investigation building upon the Malmquist index measure as well as the profitability ratios, we never find convincing evidence of economies of scale present in the Korean banking sector. It also appears that a certain type of ownership such as foreign international banks has the potential to significantly improve bank performance while the management control of government or foreign buyout funds has mainly unfavorable effects on bank performance.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jeong Yeon Lee, Doyeon Kim,