DEA with Truncated Regression and Double-Bootstrap for Panel Data with Application to Chinese Banking

Du, K, Worthington, A and Zelenyuk, V 2018, 'DEA with Truncated Regression and Double-Bootstrap for Panel Data with Application to Chinese Banking', European Journal of Operational Research, vol. 265, no. 2, pp. 748-764.


Document type: Journal Article
Collection: Journal Articles

Title DEA with Truncated Regression and Double-Bootstrap for Panel Data with Application to Chinese Banking
Author(s) Du, K
Worthington, A
Zelenyuk, V
Year 2018
Journal name European Journal of Operational Research
Volume number 265
Issue number 2
Start page 748
End page 764
Total pages 17
Publisher Elsevier BV
Abstract We investigate the impact of earning asset diversification on Chinese bank efficiency from 2006 to 2011. We do this by adapting the current two-stage data envelopment analysis approach to a panel data setting so that we can account for technology change over time. Our Monte Carlo experiments illustrate the advantages and disadvantages of the proposed new algorithm over the conventional approach. When applied to Chinese banking data, the regression results reveal that increasing the asset share of other earning assets (including securities and derivatives) is positively associated with bank efficiency. Decreasing the share of nonearning assets in total assets or increasing total equity has a similar impact. Our results also suggest that financial reforms currently being undertaken in China, including removing the regulatory requirement concerning the ratio of loans to deposits (a draft amendment to the existing commercial banking law) and interest rate liberalization (a proposed draft amendment), are likely to have a positive effect on bank efficiency in China.
Subject Financial Economics
Econometric and Statistical Methods
Keyword(s) Data envelopment analysis. Truncated regression
Bootstrapping
Chinese banks
Asset diversification
DOI - identifier 10.1016/j.ejor.2017.08.005
Copyright notice © 2017 ElsevierB.V.Allrightsreserved.
ISSN 0377-2217
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 9 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 0 times in Scopus Article
Altmetric details:
Access Statistics: 9 Abstract Views  -  Detailed Statistics
Created: Thu, 31 Jan 2019, 11:26:00 EST by Catalyst Administrator
© 2014 RMIT Research Repository • Powered by Fez SoftwareContact us