The main purpose of this study is to investigate whether there is a relationship between bank efficiency and stock performance in the EU markets using 141 commercial banks over the period 2004-2010. First, we estimate cost and profit efficiencies of banking sectors in the 27 European Union...

This study examines cost and profit efficiencies of banking sectors in the 27 European Union countries over the period 2004-2010 using the stochastic frontier analysis (SFA). The study divides the EU sample into four sub-samples; the entire EU, the old and the new EU countries as well as the...