Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks

This study focuses on technical efficiency measures and its decompositions as well as the relationship between efficiency and banking competition of Malaysian commercial banks. This study employs Data Envelopment Analysis to assess efficiency performance of Malaysian commercial banks during 1996–...

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Main Author: Ab Rahim, Rossazana
Format: Article
Language:English
Published: Asian Academy of Management (AAM) 2016
Subjects:
Online Access:http://eprints.usm.my/37431/
http://eprints.usm.my/37431/1/aamjaf120116_01.pdf
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author Ab Rahim, Rossazana
author_facet Ab Rahim, Rossazana
author_sort Ab Rahim, Rossazana
building USM Institutional Repository
collection Online Access
description This study focuses on technical efficiency measures and its decompositions as well as the relationship between efficiency and banking competition of Malaysian commercial banks. This study employs Data Envelopment Analysis to assess efficiency performance of Malaysian commercial banks during 1996–2011 while to estimate banking competition; Lerner index approach is utilised. Next, Granger causality tests between competition indexes and various measures of efficiency are undertaken to investigate "Does competition foster efficiency?" The evidence suggests that Malaysian commercial banks experienced increased concentration coupled with lower competition. The results of causality tests support a positive effect of competition on technical efficiency in Malaysian banking
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institution Universiti Sains Malaysia
institution_category Local University
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publishDate 2016
publisher Asian Academy of Management (AAM)
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spelling usm-374312017-11-15T07:10:59Z http://eprints.usm.my/37431/ Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks Ab Rahim, Rossazana HD28-70 Management. Industrial Management This study focuses on technical efficiency measures and its decompositions as well as the relationship between efficiency and banking competition of Malaysian commercial banks. This study employs Data Envelopment Analysis to assess efficiency performance of Malaysian commercial banks during 1996–2011 while to estimate banking competition; Lerner index approach is utilised. Next, Granger causality tests between competition indexes and various measures of efficiency are undertaken to investigate "Does competition foster efficiency?" The evidence suggests that Malaysian commercial banks experienced increased concentration coupled with lower competition. The results of causality tests support a positive effect of competition on technical efficiency in Malaysian banking Asian Academy of Management (AAM) 2016 Article PeerReviewed application/pdf en http://eprints.usm.my/37431/1/aamjaf120116_01.pdf Ab Rahim, Rossazana (2016) Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks. Asian Academy of Management Journal of Accounting and Finance, 12 (1). pp. 1-23. ISSN 1823-4992 http://web.usm.my/journal/aamjaf/12-1-1-2016.html
spellingShingle HD28-70 Management. Industrial Management
Ab Rahim, Rossazana
Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks
title Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks
title_full Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks
title_fullStr Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks
title_full_unstemmed Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks
title_short Does Competition Foster Efficiency? Empirical Evidence From Malaysian Commercial Banks
title_sort does competition foster efficiency? empirical evidence from malaysian commercial banks
topic HD28-70 Management. Industrial Management
url http://eprints.usm.my/37431/
http://eprints.usm.my/37431/
http://eprints.usm.my/37431/1/aamjaf120116_01.pdf