http://d1c25a6gwz7q5e.cloudfront.net/papers/67.pdf

Efficiency of financial institutions: International survey and directions for future research

/pdf/the-theory-of-industrial-organization-19bejph0ej.pdf

The Theory of Industrial Organization

Empirical research on complementarity between organizational design decisions has traditionally focused on the question of existence of complementarity. In this paper, we take a broader approach to the issue, combining a productivity and an adoption approach, while including a search for contextual variables in the firms strategy that affects complementarity. Analysis of contextual variables is not only interesting per se, but also improves the productivity test for the existence of complementarity. We use our empirical methodology to analyze complementarity between innovation activities: internal research and development (R&D) and external knowledge acquisition. Our results suggest that internal R&D and external knowledge acquisition are complementary innovation activities, but that the degree of complementarity is sensitive to other elements of the firms strategic environment. We identify reliance on basic R&Dthe importance of universities and research centers as an information source for the innovation processas an important contextual variable affecting complementarity between internal and external innovation activities.

In Search of Complementarity in Innovation Strategy: Internal R&D and External Knowledge Acquisition

Over the past several years, substantial research effort has gone into measuring the efficiency of financial institutions. Many studies have found that inefficiencies are quite large, on the order of 20% or more of total banking industry costs and about half of the industry's potential profits. There is no consensus on the sources of the differences in measured efficiency. this paper examines several possible sources, including differences in efficiency concept, measurement method, and a number of bank, market, and regulatory characteristics. We review the existing literature and provide new evidence using data on US banks over the period 1990–1995.

/pdf/inside-the-black-box-what-explains-differences-in-the-zq0qwpjnhz.pdf

Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?

The aim of this study is to examine the effect of bank-specific, industry-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct-Performance (SCP) hypothesis. To account for profit persistence, we apply a GMM technique to a panel of Greek banks that covers the period 1985-2001. The estimation results show that profitability persists to a moderate extent, indicating that departures from perfectly competitive market structures may not be that large. All bank-specific determinants, with the exception of size, affect bank profitability significantly in the anticipated way. However, no evidence is found in support of the SCP hypothesis. Finally, the business cycle has a positive, albeit asymmetric effect on bank profitability, being significant only in the upper phase of the cycle.

Bank-Specific, Industry-Specific and Macroeconomic Determinants of Bank Profitability

Competitive viability in banking: Scale, scope, and product mix economies

The dominance of inefficiencies over scale and product mix economies in banking

Measurement and Efficiency Issues in Commercial Banking

https://www.federalreserve.gov/pubs/feds/1997/199750/199750pap.pdf

David B. Humphrey

Papers

Efficiency of financial institutions: International survey and directions for future research

Competitive viability in banking: Scale, scope, and product mix economies

The dominance of inefficiencies over scale and product mix economies in banking

Measurement and Efficiency Issues in Commercial Banking

Consistency Conditions for Regulatory Analysis of Financial Institutions: A Comparison of Frontier Efficiency Methods