IDEAS home Printed from https://ideas.repec.org/a/bdd/journl/v5y2011i2p159-181.html
   My bibliography  Save this article

Impact of Firm Attributes on the Efficiency of Brokerage Houses

Author

Listed:
  • Hakan AYGOREN
  • M.Ensar YESILYURT

Abstract

Financial markets exist in order to bring together buyers and sellers of securities. Financial intermediaries, also known as financial institutions play an important role in financial markets. The most important contribution of financial intermediaries is a steady and relatively inexpensive flow of funds from savers to final users or investors. Thus efficiency of financial intermediaries is of importance for efficient markets. Brokerage houses efficiency is closely related to efficiency of financial markets due to the transaction costs and speed of transacting. This study analyzes the factors influencing the efficiency of brokerage houses by using Stochastic Frontier Analysis (SFA). The results show that several firm attributes have impact on efficiency. The results indicate that age of brokerage houses and numbers of employees have positive impact on efficiency, however, other firm attributes such as number of branches, firm size, financial leverage, and service ratio (Stock transactions/Total transaction) have negative impact on efficiency of brokerage houses.

Suggested Citation

  • Hakan AYGOREN & M.Ensar YESILYURT, 2011. "Impact of Firm Attributes on the Efficiency of Brokerage Houses," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 5(2), pages 159-181.
  • Handle: RePEc:bdd:journl:v:5:y:2011:i:2:p:159-181
    as

    Download full text from publisher

    File URL: http://www.bddk.org.tr/WebSitesi/turkce/Raporlar/BDDK_Dergi/106485_.pdf
    Download Restriction: no

    More about this item

    Keywords

    Efficiency; Brokerage Houses; Stochastic Frontier (SFA); Financial Markets; Financial Intermediary;

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdd:journl:v:5:y:2011:i:2:p:159-181. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zafer KovancĂ˝). General contact details of provider: http://edirc.repec.org/data/bddgvtr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.