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Managers and efficiency in banking

  • Kauko, Karlo

    ()

    (Bank of Finland Research)

This paper presents evidence on the impact of managers on cost efficiency in banking. Stochastic frontier analysis is applied to a unique Finnish data set. The paper finds that manager age and education have strong yet complicated effects. University education enhances efficiency if the manager is running a large bank. Managing director changes are systematically followed by efficiency changes. Manager retirement typically causes an efficiency improvement, whereas other manager changes can either improve or weaken efficiency.

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File URL: http://www.suomenpankki.fi/en/julkaisut/tutkimukset/keskustelualoitteet/Documents/0711netti.pdf
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Paper provided by Bank of Finland in its series Research Discussion Papers with number 11/2007.

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Length: 34 pages
Date of creation: 18 Sep 2007
Date of revision:
Handle: RePEc:hhs:bofrdp:2007_011
Contact details of provider: Postal: Bank of Finland, P.O. Box 160, FI-00101 Helsinki, Finland
Web page: http://www.suomenpankki.fi/en/

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