Ownership Structure and Building Society Efficiency
AbstractThis paper investigates the effect of ownership structure on the cost efficiency of Australian building societies using the stochastic econometric frontier approach. Contrary to the expense preference hypothesis, mutually owned societies we found to be, on average, more cost efficient than those under stock ownership. Moreover, mutual and stoc-owned societies have significantly different cost functions or production technologies. The results are consistent with U.S. results of Mester (1993).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Finance Discipline Group, UTS Business School, University of Technology, Sydney in its series Working Paper Series with number 78.
Date of creation: 01 Oct 1997
Date of revision:
Publication status: Published as: Hutcheson, T. and Sharpe, I., 1998, "Ownership Structure and Building Society Efficiency", Australian Journal of Management, 23(2), 151-168.
cost efficiency; ownership diffusion;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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.:
- Loretta J. Mester, 1992.
"Efficiency in the savings and loan industry,"
92-14, Federal Reserve Bank of Philadelphia.
- Loretta J. Mester, . "Efficiency in the Savings and Loan Industry," Rodney L. White Center for Financial Research Working Papers 26-92, Wharton School Rodney L. White Center for Financial Research.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
- Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-77, December.
- Kane, Edward J. & Kaufman, George G., 1993.
"Incentive conflict in deposit-institution regulation: evidence from Australia,"
Pacific-Basin Finance Journal,
Elsevier, vol. 1(1), pages 13-29, March.
- Edward J. Kane & George G. Kaufman, 1992. "Incentive conflict in deposit-institution regulation: evidence from Australia," Working Paper Series, Issues in Financial Regulation 92-5, Federal Reserve Bank of Chicago.
- Hunter, William C & Timme, Stephen G, 1991. "Technological Change in Large U.S. Commercial Banks," The Journal of Business, University of Chicago Press, vol. 64(3), pages 339-62, July.
- English, M. & Grosskopf, S. & Hayes, K. & Yaisawarng, S., 1993. "Output allocative and technical efficiency of banks," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 349-366, April.
- Noulas, Athanasios G & Ray, Subhash C & Miller, Stephen M, 1990. "Returns to Scale and Input Substitution for Large U.S. Banks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 22(1), pages 94-108, February.
- Loretta J. Mester, 1989.
"Testing for expense preference behavior: mutual versus stock savings and loans,"
89-27, Federal Reserve Bank of Philadelphia.
- Loretta J. Mester, 1989. "Testing for Expense Preference Behavior: Mutual versus Stock Savings and Loans," RAND Journal of Economics, The RAND Corporation, vol. 20(4), pages 483-498, Winter.
- Jeffrey A. Clark, 1988. "Economies of scale and scope at depository financial institutions: a review of the literature," Economic Review, Federal Reserve Bank of Kansas City, issue Sep, pages 16-33.
- Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
- Binswanger, Hans P., 1973. "A Cost Function Approach To The Measurement Of Factor Demand Elasticities And Elasticities Of Substitution," Staff Papers 13478, University of Minnesota, Department of Applied Economics.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Duncan Ford).
If references are entirely missing, you can add them using this form.