One learns two main lessons from studying the great quantity of banking efficiency literature. These lessons regard the heterogeneity in results and the absence of a comprehensive review aimed at understanding the reasons for this variability. Surprisingly, although this issue is well-known, it has not been systematically analyzed before. In order to fill this gap, we perform a Meta-Regression-Analysis (MRA) by examining 1,661 efficiency scores retrieved from 120 papers published over the period 2000-2014. The meta-regression is estimated by using the Random Effects Multilevel Model (REML), because it controls for within-study and between-study heterogeneity. The analysis yields four main results. Firstly, parametric methods yield lower levels of banking efficiency than nonparametric studies. This holds true even after controlling for the approach used in selecting the inputs and outputs of the frontier. Secondly, we show that banking efficiency is highest when using the value added approach, followed by estimates from studies based on the intermediation method, whereas those based on the hybrid approach are the lowest. Thirdly, efficiency scores also depend on the quality of studies and on the number of observations and variables used in the primary papers. As far as the effects of sample size, dimension and quality of papers are concerned, there are significant differences in sign and magnitude between parametric and nonparametric studies. Finally, cost efficiency is found to be higher than profit and production efficiency. Interestingly, MRA results are robust to the potential outliers in efficiency and sample size distributions

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On the Sources of Heterogeneity in Banking Efficiency Literature

Market Skewness Risk and the Cross Section of Stock Returns

The aim of the study was to comparatively evaluate the antibacterial activity of six Indian plant extracts and 0.2% chlorhexidine against clinical strains of Streptococcus mutans, which were isolated from the plaque samples of 45 pediatric patients. Six plant extracts were prepared in three different forms, namely aqueous extracts, organic solvent-based extracts and crude (raw) extracts. The antimicrobial sensitivity testing was done by agar well diffusion method. Antimicrobial activity of the extracts was determined by measuring the mean zones of inhibition (mm) produced against the bacterial isolates. Results showed that crude garlic extract exhibited greater antibacterial activity than chlorhexidine. Aqueous extract of amla and organic solvent-based extract of ginger showed the maximum antibacterial activity against S. mutans, whereas aqueous extract of tulsi and organic solvent based extract of amla showed the minimum antibacterial activity. This study suggests that plant extracts like garlic in crude form, amla as aqueous infusion and ginger as alcoholic tincture have potential for the control of S. mutans. These extracts can be used as an alternative remedy for dental caries prevention or in the form of mouthwash, which is safe and economical.

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Use of Traditional Indian Plants in the Inhibition of Caries-Causing Bacteria - Streptococcus mutans

One learns two main lessons from studying the great quantity of banking efficiency literature. These lessons regard the heterogeneity in results and the absence of a comprehensive review aimed at understanding the reasons for this variability. Surprisingly, although this issue is well-known, it has not been systematically analyzed before. In order to fill this gap, we perform a Meta-Regression-Analysis (MRA) by examining 1661 efficiency scores retrieved from 120 papers published over the period 2000–2014. The meta-regression is estimated by using the Random Effects Multilevel Model (REML) because it controls for within- and between-study heterogeneity. The analysis yields four main results. First, parametric methods yield lower levels of banking efficiency than nonparametric studies. This holds true even after controlling for the approach used in selecting the inputs and outputs of the frontier. Secondly, we show that banking efficiency is highest when using the value-added approach, followed by e...

Efficiency in banking: a meta-regression analysis

Modelling residential fire incident response times: A spatial analytic approach

Banking system plays an important role in the economic development of any country. Domestic banks, which are the main components of the banking system, have to be efficient; otherwise, they may create obstacle in the process of development in any economy. This study examines the technical efficiency of the Malaysian domestic banks listed in the Kuala Lumpur Stock Exchange (KLSE) market over the period 2005–2010. A parametric approach, Stochastic Frontier Approach (SFA), is used in this analysis. The findings show that Malaysian domestic banks have exhibited an average overall efficiency of 94 percent, implying that sample banks have wasted an average of 6 percent of their inputs. Among the banks, RHBCAP is found to be highly efficient with a score of 0.986 and PBBANK is noted to have the lowest efficiency with a score of 0.918. The results also show that the level of efficiency has increased during the period of study, and that the technical efficiency effect has fluctuated considerably over time.

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A Cobb Douglas Stochastic Frontier Model on Measuring Domestic Bank Efficiency in Malaysia

The stock market is considered essential for economic growth and expected to contribute to improved productivity. An efficient pricing mechanism of the stock market can be a driving force for channeling savings into profitable investments and thus facilitating optimal allocation of capital. This study investigated the technical efficiency of selected groups of companies of Bangladesh Stock Market that is the Dhaka Stock Exchange (DSE) market, using the stochastic frontier production function approach. For this, the authors considered the Cobb-Douglas Stochastic frontier in which the technical inefficiency effects are defined by a model with two distributional assumptions. Truncated normal and half-normal distributions were used in the model and both time-variant and time-invariant inefficiency effects were estimated. The results reveal that technical efficiency decreased gradually over the reference period and that truncated normal distribution is preferable to half-normal distribution for technical inefficiency effects. The value of technical efficiency was high for the investment group and low for the bank group, as compared with other groups in the DSE market for both distributions in time- varying environment whereas it was high for the investment group but low for the ceramic group as compared with other groups in the DSE market for both distributions in time-invariant situation.

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Stochastic frontier model approach for measuring stock market efficiency with different distributions.

Land grabbing has become the major problem in all the protected forest areas of Bangladesh during the last two decades. The study was conducted in Bhawal National Park, the tropical moist deciduous Sal (Shorea robusta C.F. Gaertn) forest ecosystem of Bangladesh. This area is going through a critical situation caused by industrial revolution. Already, 255.3 ha forest lands have been grabbed by 354 illegal industrial set-ups from the study area. In this study, grabbing of protected forestland by industries, their types, future grabbing trends, increasing population inside the forest area, causal factors of grabbing and impact on biodiversity have been analysed. Increasing practical conservation efforts supported by strong political will and ordinance for specific areas is essential to conserve the protected areas. Community-based conservation approaches need to be applied for mass awareness regarding the value of this ecosystem for sustainability.

Assessment of land grabbing from protected forest areas of Bhawal National Park in Bangladesh

In this study we examine a risk-return association within the Capital Asset Pricing Model (CAPM) structure in Dhaka Stock Exchange (DSE) market. The study also aims at exploring whether the CAPM is applicable in DSE. For this study we have been used monthly stock returns from 80 non-financial companies for the period of January 2005 to December 2009. In order to examine the risk-return trade off in a sample of individual stocks, we apply the usual two stages regression. From the CAPM empirical analysis for individual stocks, it is observed that intercept term is significantly different from zero and slope is not equal to the excess return on the market portfolio. But, the CAPM's prediction for the intercept is that it should equal zero and the slope should equal the excess returns on the market portfolio. So, the results of the study refute the above hypothesis and offer evidence against the CAPM. Thus, it can be concluded that CAPM is not a suitable indicator of asset prices in Bangladesh over the chosen sample period. The securities market line shows linearity which means that the CAPM linear relationship is enough to express the returns generating process. Moreover, the investors are rewarded for market risk but not for unique risk because unique risk shows insignificancy during the period.

Relationship between Risk and Expected Returns: Evidence from the Dhaka Stock Exchange

Capital Asset Pricing Model (CAPM) was a revolution in financial theory. CAPM postulates an equilibrium linear association between expected return and risk of an asset.This study investigates a risk-return relationship within the CAPM framework in Dhaka Stock Exchange (DSE) using monthly stock returns from 80 non-financial companies for the period of January 2005 to December 2009.From the CAPM empirical analysis, it is observed that intercept term is significantly different from zero and insignificant but there exists a positive relationship between beta and share return.The results of the study refute the CAPM hypothesis and offer evidence against the CAPM in DSE market. However, there exists linearity in the securities market line. The unique risk and the interaction are insignificant during the period.

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Md. Zobaer Hasan

Papers

A Cobb Douglas Stochastic Frontier Model on Measuring Domestic Bank Efficiency in Malaysia

Stochastic frontier model approach for measuring stock market efficiency with different distributions.

Assessment of land grabbing from protected forest areas of Bhawal National Park in Bangladesh

Relationship between Risk and Expected Returns: Evidence from the Dhaka Stock Exchange

A Validity Test of Capital Asset Pricing Model for Dhaka Stock Exchange