Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis

This study estimates the cost efficiency of Chinese commercial banks by employing stochastic frontier analysis. The main objective is to assess cost efficiency by applying the most recent post-reform data from 2004 to 2014. A two-stage regression model is used to examine the impact from potential in...

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Main Author: LI, YAJING
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Subjects:
Online Access:https://eprints.nottingham.ac.uk/30034/
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author LI, YAJING
author_facet LI, YAJING
author_sort LI, YAJING
building Nottingham Research Data Repository
collection Online Access
description This study estimates the cost efficiency of Chinese commercial banks by employing stochastic frontier analysis. The main objective is to assess cost efficiency by applying the most recent post-reform data from 2004 to 2014. A two-stage regression model is used to examine the impact from potential influential factors on cost efficiency. Overall, the estimated cost efficiency is 77.75% compared with “best practice” banks in the selected sample. Foreign-owned commercial banks are found to be the most efficient. Macroeconomic factors do not show a significant influence on cost efficiency. A positive correlation between bank size, return on assets (ROA) and equity ratio is found, and the loan-deposit ratio is negatively related to cost efficiency.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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publishDate 2015
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spelling nottingham-300342017-10-19T14:57:28Z https://eprints.nottingham.ac.uk/30034/ Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis LI, YAJING This study estimates the cost efficiency of Chinese commercial banks by employing stochastic frontier analysis. The main objective is to assess cost efficiency by applying the most recent post-reform data from 2004 to 2014. A two-stage regression model is used to examine the impact from potential influential factors on cost efficiency. Overall, the estimated cost efficiency is 77.75% compared with “best practice” banks in the selected sample. Foreign-owned commercial banks are found to be the most efficient. Macroeconomic factors do not show a significant influence on cost efficiency. A positive correlation between bank size, return on assets (ROA) and equity ratio is found, and the loan-deposit ratio is negatively related to cost efficiency. 2015-09-16 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/30034/1/Final5.0%20-%20Copy.pdf LI, YAJING (2015) Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis. [Dissertation (University of Nottingham only)] stochastic frontier analysis; cost X-efficiency; China banks
spellingShingle stochastic frontier analysis; cost X-efficiency; China banks
LI, YAJING
Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis
title Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis
title_full Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis
title_fullStr Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis
title_full_unstemmed Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis
title_short Cost Efficiency of Chinese Commercial Banks - A Stochastic Frontier Analysis
title_sort cost efficiency of chinese commercial banks - a stochastic frontier analysis
topic stochastic frontier analysis; cost X-efficiency; China banks
url https://eprints.nottingham.ac.uk/30034/