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I use the stochastic frontier methodology to estimate a cost and a profit frontier functions. The Fourier-flexible form is used in this paper because of its flexibility. Results show that, although foreign banks are more cost efficient than domestic banks, domestic banks are more profit...
Persistent link: https://www.econbiz.de/10005837395
The 'law and finance theory' predicts that the common law system provides the best basis for financial development and … investors does not hold empirically. Also, later additions to the theory's creditor right indicators data pool are eliminating …
Persistent link: https://www.econbiz.de/10010817094
When a customer can borrow from several competing banks, multiple lending raises default risk. If creditor rights are poorly protected, this contractual externality can generate novel equilibria with strategic default and rationing, in addition to equilibria with excessive lending or...
Persistent link: https://www.econbiz.de/10005792414
The authors analyze commercial banks’ profitability (return on equity, ROE) at different levels of creditor rights and an aggregate score of information sharing in terms of credit bureaus. After controlling for bank size and some macroeconomic variables, the results indicate that profitability...
Persistent link: https://www.econbiz.de/10008753447
This paper investigates how the institutional setting for protection of creditor rights affects bank lending and risk-taking. An analytical model is specified to underpin banks‟ portfolio decisions, between loans and other earning assets such as government securities. The model is augmented...
Persistent link: https://www.econbiz.de/10008838307
This work analyses how the degree of creditor protection and the existence of credit information systems impact the development of the credit market of the countries which make up Mercosul. Using quantile regression to approach the problem empirically, the results obtained indicate that despite...
Persistent link: https://www.econbiz.de/10010631401
The presence of foreign banks in emerging markets has increased markedly over the last two decades, raising questions about their potentially stabilizing or destabilizing role during times of financial distress. Most studies on this subject have focused on banks’ asset side (i.e., their...
Persistent link: https://www.econbiz.de/10011242311
This paper examines whether the stock markets price changes in operating efficiency as a result of bank mergers and if the premiums paid by the acquiring banks also reflect these changes. The sample covers mergers and acquisitions consummated in the US and Europe during the period of 1997 to...
Persistent link: https://www.econbiz.de/10010987887
Many modern firms compete globally. However, research into whether foreignness is an asset or a liability in competition with domestic firms is inconclusive. We argue that foreign MNC subsidiaries are not per se advantaged or disadvantaged. We suggest that the distinction originates from the...
Persistent link: https://www.econbiz.de/10010886124
The present study is an attempt to empirically investigate the price spread, marketing costs, marketing margins, marketing efficiency, and profit efficiency among market middlemen under cooperative and non-cooperative marketing channels in the domestic trade market of liquid milk in West Bengal....
Persistent link: https://www.econbiz.de/10010938621