The purpose of this paper is to examine whether the stock performance of EU listed banks is related to their efficiency. Our sample consists of 171 banks operating in 15 EU markets over the period 2002-2006. First, we use stochastic frontier analysis to estimate the cost and profit efficiency of...

This Chapter presents an application of quantile regression analysis in estimating the cost efficiency of 1,520 commercial banks operating in 73 countries during 2000-2006. This approach allows us to estimate banks' cost function for various quantiles of the conditional distribution and to...