Foreign and Domestic Bank Performances: An Ideal Decomposition of Industry Dynamics
AbstractThe aggregate performance of the banking industry depends on the underlying micro-level dynamics within that industry -- adjustments within banks, reallocations between banks, entries of new banks, and exits of existing banks. Jeon and Miller (2002a) extend Bailey, Hulten, and Campbell (1992) and Haltiwanger (1997) to develop a generalized ideal dynamic decomposition. This paper illustrates the ideal dynamic decomposition with return on equity of foreign and domestic Korean commercial banks from 1994 to 2000. The overall performance of Korean banks largely reflects individual bank efficiencies, except immediately after the Asian financial crisis where restructuring played a more important role on average bank performance. Foreign bank performance, however, largely reflected individual bank efficiencies, even immediately after the Asian financial crisis.
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Bibliographic InfoPaper provided by University of Connecticut, Department of Economics in its series Working papers with number 2002-24.
Length: 26 pages
Date of creation: Nov 2002
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commercial banks; profitability; foreign banks and global advantage hypothesis;
Other versions of this item:
- Yongil Jeon & Stephen M. Miller, 2004. "Foreign and Domestic Bank Performances: An Ideal Decomposition of Industry Dynamics," Working papers 2004-46, University of Connecticut, Department of Economics.
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- G2 - Financial Economics - - Financial Institutions and Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-11-28 (All new papers)
- NEP-CFN-2002-11-28 (Corporate Finance)
- NEP-EFF-2002-12-17 (Efficiency & Productivity)
- NEP-ENT-2002-11-28 (Entrepreneurship)
- NEP-IFN-2002-11-28 (International Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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