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Efficiencies of Small Financial Cooperatives in Japan: Comparison of Estimation Methods

Listed author(s):
  • Kozo Harimaya

    (College of Business Administration, Ritsumeikan University)

  • Kei Tomimura

    (Faculty of Business Administration, Aichi University)

  • Nobuyoshi Yamori

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

This study investigates the efficiency of Japanese credit cooperatives using a stochastic directional distance function approach and compares the results obtained from a slack-based data envelopment analysis model (SBM). Moreover, it focuses on the differences in the four groups classified by a type of common bond in a membership and considers the validity of small financial cooperatives. The findings reveal that ethnic minority-owned cooperatives that experienced a drastic consolidation in the last two decades are more efficient than the other groups and those owned through an industry-based membership are less efficient. Although the results slightly differ among alternative measures, this paper emphasizes the potential merger effects of small financial cooperatives in Japan.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2015-04.pdf
File Function: First version, 2015
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Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2015-04.

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Length: 26 pages
Date of creation: Feb 2015
Handle: RePEc:kob:dpaper:dp2015-04
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  22. David Carter & James McNulty & James Verbrugge, 2004. "Do Small Banks have an Advantage in Lending? An Examination of Risk-Adjusted Yields on Business Loans at Large and Small Banks," Journal of Financial Services Research, Springer;Western Finance Association, vol. 25(2), pages 233-252, April.
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