| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 963870 | Journal of International Financial Markets, Institutions and Money | 2014 | 23 Pages |
•We investigate bank shareholder value and efficiency in Asia Pacific.•Shareholder value is positively linked to cost and profit efficiency.•Bank size, credit losses, and market risk influence bank performance.•A negative relationship exists between market risk and value creation.
This paper uses dynamic panel estimation approaches to investigate the relationship between shareholder value and efficiency for a large sample of commercial banks in 14 Asia-Pacific economies between 2003 and 2010. In general, the results indicate that shareholder value is positively linked to improvements in both cost and profit efficiency, and the influence varies over time. The findings also suggest that bank size, credit losses, and market risk significantly influence bank performance. These results are robust to various model specifications.
