The Impact of Risk on Banks’ Technical and Scale Efficiency: Empirical Evidence from the Chinese Banking Sector
By employing the Data Envelopment Analysis (DEA) method, this paper attempts to examine the impact of risks on Chinese banks’ technical and scale efficiency estimates. To do so, it follows the procedures set by Drake and Hall (2003) to include risk factor as a non-discretionary input variable. The empirical findings suggest that scale inefficiency has greater influence than pure technical inefficiency in determining the Chinese banking sector’s total technical efficiency. The results suggest that potential economies of scale are overestimated in the range of 22% to 30% when the risk factor is excluded. Moreover, the inclusion of risk factor benefits the city commercial banks the most, and the joint-stock commercial banks the least.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): VIII (2010)
Issue (Month): 1 & 2 (March & June)
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:icf:icfjfe:v:08:y:2010:i:1&2:p:82-102. 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: (G R K Murty)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.