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Managers and efficiency in banking

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Author Info
Kauko, Karlo () (Bank of Finland Research)
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.

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Publisher Info
Paper provided by Bank of Finland in its series Research Discussion Papers with number 11/2007.

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Length: 34 pages
Date of creation: 18 Sep 2007
Date of revision:
Handle: RePEc:hhs:bofrdp:2007_011

Contact details of provider:
Postal: Bank of Finland, P.O. Box 160, FI-00101 Helsinki, Finland
Web page: http://www.bof.fi/en/tutkimus
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Related research
Keywords: efficiency banking managers

Find related papers by JEL classification:
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
M19 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Other

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    Other versions:
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