Bank Cost Efficiency in Hong Kong and China
Applying stochastic frontier cost function, this paper examines banks cost efficiency in Hong Kong and China from the period of 1993 to 2012. One main purpose of this paper is to investigate how banks perform differently between Hong Kong and China. A second step regression analysis is also conducte...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2013
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| Online Access: | https://eprints.nottingham.ac.uk/26706/ |
| _version_ | 1848793229423542272 |
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| author | Lei, Juan |
| author_facet | Lei, Juan |
| author_sort | Lei, Juan |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Applying stochastic frontier cost function, this paper examines banks cost efficiency in Hong Kong and China from the period of 1993 to 2012. One main purpose of this paper is to investigate how banks perform differently between Hong Kong and China. A second step regression analysis is also conducted in the frontier to check deterministic factors of cost efficiency. Overall, the yearly mean efficiency ranges from 0.57 to 0.83. Compared with Hong Kong, Chinese banks seem to be holistic more efficient but the top ten efficient banks all come from Hong Kong. In the regression results, unconsolidated banks exhibit more cost efficiency than consolidated banks. And the variables INFL (inflation rate), NIM (net interest margin), ROAE (return on average equity) and CTIR (cost to income) indicate positive relationship with inefficiency while LNTA (logarithm of total assets) ETA (equity to total assets) demonstrate negative relationship with the inefficiency term. |
| first_indexed | 2025-11-14T18:56:59Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-26706 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:56:59Z |
| publishDate | 2013 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-267062018-01-28T05:35:29Z https://eprints.nottingham.ac.uk/26706/ Bank Cost Efficiency in Hong Kong and China Lei, Juan Applying stochastic frontier cost function, this paper examines banks cost efficiency in Hong Kong and China from the period of 1993 to 2012. One main purpose of this paper is to investigate how banks perform differently between Hong Kong and China. A second step regression analysis is also conducted in the frontier to check deterministic factors of cost efficiency. Overall, the yearly mean efficiency ranges from 0.57 to 0.83. Compared with Hong Kong, Chinese banks seem to be holistic more efficient but the top ten efficient banks all come from Hong Kong. In the regression results, unconsolidated banks exhibit more cost efficiency than consolidated banks. And the variables INFL (inflation rate), NIM (net interest margin), ROAE (return on average equity) and CTIR (cost to income) indicate positive relationship with inefficiency while LNTA (logarithm of total assets) ETA (equity to total assets) demonstrate negative relationship with the inefficiency term. 2013 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26706/1/Juan_Lei_2013.pdf Lei, Juan (2013) Bank Cost Efficiency in Hong Kong and China. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Lei, Juan Bank Cost Efficiency in Hong Kong and China |
| title | Bank Cost Efficiency in Hong Kong and China |
| title_full | Bank Cost Efficiency in Hong Kong and China |
| title_fullStr | Bank Cost Efficiency in Hong Kong and China |
| title_full_unstemmed | Bank Cost Efficiency in Hong Kong and China |
| title_short | Bank Cost Efficiency in Hong Kong and China |
| title_sort | bank cost efficiency in hong kong and china |
| url | https://eprints.nottingham.ac.uk/26706/ |