IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-137-45463-8_3.html
   My bibliography  Save this book chapter

Effects of Heterogeneity on Measuring Efficiency Scores: The Case of China’s Banking Sector

In: Experiences and Challenges in the Development of the Chinese Capital Market

Author

Listed:
  • Yizhe Dong
  • Douglas Cumming
  • Alessandra Guariglia
  • Wenxuan Hou
  • Edward Lee

Abstract

Banks play a central role in the financial system and also in the real economy, as the 2008 financial crisis has vividly illustrated. The measurement of banking performance has gained importance for both policy makers and practitioners in relation to their decision making. Hence, empirical assessment of the efficiency of banking institutions has received considerable attention in the banking literature (see Berger and Humphrey, 1997; Berger, 2007; Fethi and Pasiouras, 2010 for a comprehensive review of banking efficiency studies). However, efficiency measures can vary substantially across different samples and empirical specifications, which may limit the use of efficiency measures by decision makers. Some previous studies (e.g., Bauer et al., 1998; McKillop et al., 2005; Bos et al., 2009) have compared the efficiency of financial institutions which is obtained using different approaches or specifications. They reported that efficiency scores vary considerably across different models. Therefore, choosing an appropriate frontier model is very important for measuring banking efficiency.

Suggested Citation

  • Yizhe Dong & Douglas Cumming & Alessandra Guariglia & Wenxuan Hou & Edward Lee, 2015. "Effects of Heterogeneity on Measuring Efficiency Scores: The Case of China’s Banking Sector," Palgrave Macmillan Books, in: Douglas Cumming & Alessandra Guariglia & Wenxuan Hou & Edward Lee (ed.), Experiences and Challenges in the Development of the Chinese Capital Market, chapter 3, pages 37-67, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-45463-8_3
    DOI: 10.1057/9781137454638_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    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:pal:palchp:978-1-137-45463-8_3. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.