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

The Theory of Industrial Organization

Globalization, Corporate Finance, and the Cost of Capital

An Empirical Analysis of the Dynamic Relation between Investment-Grade Bonds and Credit Default Swaps

Using stochastic frontier approach, this paper investigates the cost and profit efficiency levels of 71 commercial banks in Gulf cooperation council countries over the period 1999–2007. This study also conducts a comparative analysis of the efficiency across countries and between conventional and Islamic banks. Moreover, we examine the bank-specific variables that may explain the sources of inefficiency. The empirical results indicate that banks in the Gulf region are relatively more efficient at generating profits than at controlling costs. We also find that in terms of both cost and profit efficiency levels, the conventional banks on average are more efficient than Islamic banks. Furthermore, we observe a positive correlation of cost and profit efficiency with bank capitalization and profitability, and a negative one with operation cost. Higher loan activity increases the profit efficiency of banks, but it has a negative impact on cost efficiency.

Cost and profit efficiency of conventional and Islamic banks in GCC countries

Principles of Corporate Governance

This study examines the impact of board size and independent directors on the performance of local commercial banks in Thailand. A panel fixed-effect in the individual regression model is used to examine this relationship over 1999–2003. The results showed a statistically significant negative relation between Thai banks’ board size and their performances. In addition, a statistically significant positive relationship was found between the proportion of independent directors on the bank board and performance.

Board Size, Independence and Performance: An Analysis of Thai Banks

This study examines the cost efficiency performance of 111 commercial banks in Bangladesh, India, Pakistan and Sri Lanka over 1997–2004. The primary focus is to assess whether bank size, state ownership and stock exchange listing have significant effects on South Asian banks' efficiency performance. To this end, a translog-form composite-error cost efficiency model, which allows for exogenous environmental influences, is estimated. The results indicate that the overall efficiency of South Asian banks declined over 1997–2004. Larger banks and banks with widespread ownership through stock exchange listings were found to be relatively more cost efficient. In contrast, state-owned banks were less efficient.

https://papers.ssrn.com/sol3/Delivery.cfm/irfi_67.pdf?abstractid=1084213&mirid=1

Cost Efficiency in South Asian Banking: The Impact of Bank Size, State Ownership and Stock Exchange Listings*

This paper examines the nature of competition and structure in South Asian banking markets. It also assesses whether traditional interest-based product market segments are more competitive than those that also include fee- and commission-based products. The reduced form Panzar–Rosse specification tests show that bank revenues appear to be earned under conditions of monopolistic competition during the period 1995 to 2003. In Bangladesh and Pakistan competition is greater in the traditional interest-based product markets while Indian and Sri Lankan domestic commercial banks seem to face more competitive pressure in the fee-based product market from other financial intermediaries.

Jayasinghe Wickramanayake

Papers

Board Size, Independence and Performance: An Analysis of Thai Banks

Cost Efficiency in South Asian Banking: The Impact of Bank Size, State Ownership and Stock Exchange Listings*

Competition and structure of South Asian banking: a revenue behaviour approach

An empirical analysis of hedge fund performance: The case of Australian hedge funds industry

Impact of off-balance sheet banking on the bank lending channel of monetary transmission: Evidence from South Asia