We investigate the impact of earning asset diversification on Chinese bank efficiency from 2006 to 2011. To do so, we adapt the Simar and Wilson (2007) (Journal of Econometrics) approach to panel data context so that approach allows for technology change over time. Regression results reveal that...

We investigate the impact of earning asset diversification on Chinese bank efficiency from by allowing for technology change. Regressions reveal that increasing the asset share of other earning assets is positively associated with bank efficiency. Decreasing the share of nonearning assets in...