The role of governance, ICT and bad loans in Australian bank efficiency: an empirical study

This paper analyzes the impact of governance, information and communications technology (ICT) and bad loans on bank efficiency over the period 1997-2007. Using linear programming-based data envelopment analysis, the study shows that the overall efficiency of Australian banks is influenced by a consi...

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Main Authors: Salim, Ruhul, Hoque, M., Suyanto, Suyanto
Format: Journal Article
Published: School of Economics and Finance, Curtin University of Technology 2010
Online Access:http://hdl.handle.net/20.500.11937/10828
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author Salim, Ruhul
Hoque, M.
Suyanto, Suyanto
author_facet Salim, Ruhul
Hoque, M.
Suyanto, Suyanto
author_sort Salim, Ruhul
building Curtin Institutional Repository
collection Online Access
description This paper analyzes the impact of governance, information and communications technology (ICT) and bad loans on bank efficiency over the period 1997-2007. Using linear programming-based data envelopment analysis, the study shows that the overall efficiency of Australian banks is influenced by a consistent growth of technicalefficiency since 1997, with major banks showing relatively higher levels of technical efficiency than regional banks. The results from the Malmquist productivity index reveal that technological progress contributes substantially to banks' productivity growth. Furthermore, the results from the common effect panel data model show that bad loans and poor governance have negative effects while ICT has apositive impact on banks' technical efficiency.
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institution Curtin University Malaysia
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publishDate 2010
publisher School of Economics and Finance, Curtin University of Technology
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spelling curtin-20.500.11937-108282017-01-30T11:21:09Z The role of governance, ICT and bad loans in Australian bank efficiency: an empirical study Salim, Ruhul Hoque, M. Suyanto, Suyanto This paper analyzes the impact of governance, information and communications technology (ICT) and bad loans on bank efficiency over the period 1997-2007. Using linear programming-based data envelopment analysis, the study shows that the overall efficiency of Australian banks is influenced by a consistent growth of technicalefficiency since 1997, with major banks showing relatively higher levels of technical efficiency than regional banks. The results from the Malmquist productivity index reveal that technological progress contributes substantially to banks' productivity growth. Furthermore, the results from the common effect panel data model show that bad loans and poor governance have negative effects while ICT has apositive impact on banks' technical efficiency. 2010 Journal Article http://hdl.handle.net/20.500.11937/10828 School of Economics and Finance, Curtin University of Technology restricted
spellingShingle Salim, Ruhul
Hoque, M.
Suyanto, Suyanto
The role of governance, ICT and bad loans in Australian bank efficiency: an empirical study
title The role of governance, ICT and bad loans in Australian bank efficiency: an empirical study
title_full The role of governance, ICT and bad loans in Australian bank efficiency: an empirical study
title_fullStr The role of governance, ICT and bad loans in Australian bank efficiency: an empirical study
title_full_unstemmed The role of governance, ICT and bad loans in Australian bank efficiency: an empirical study
title_short The role of governance, ICT and bad loans in Australian bank efficiency: an empirical study
title_sort role of governance, ict and bad loans in australian bank efficiency: an empirical study
url http://hdl.handle.net/20.500.11937/10828