Bank ownership and efficiency in the aftermath of financial crises : evidence from Indonesia
This paper examines the relationship between types of ownership of banks and their efficiency in the aftermath of a financial crisis using Greene's “true” panel data stochastic frontier model, which takes into account unobserved heterogeneity among banks. The Indonesian banking sector is analyz...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
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2014
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| Online Access: | https://hdl.handle.net/10356/102173 http://hdl.handle.net/10220/19915 |
| _version_ | 1811676606504108032 |
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| author | Riyanto, Yohanes Eko Parinduri, Rasyad A. |
| author2 | School of Humanities and Social Sciences |
| author_facet | School of Humanities and Social Sciences Riyanto, Yohanes Eko Parinduri, Rasyad A. |
| author_sort | Riyanto, Yohanes Eko |
| collection | NTU |
| description | This paper examines the relationship between types of ownership of banks and their efficiency in the aftermath of a financial crisis using Greene's “true” panel data stochastic frontier model, which takes into account unobserved heterogeneity among banks. The Indonesian banking sector is analyzed using financial data of 144 banks operating in Indonesia over the period of 2000Q4–2005Q2. In the aftermath of the 1997 Asian financial crisis, the cost efficiency of all banks improves over time on average. However, there is some evidence that, as these banks improve their efficiency, state-owned banks are the least efficient banks while joint-venture and foreign-owned banks are the most efficient. |
| first_indexed | 2024-10-01T02:24:09Z |
| format | Journal Article |
| id | ntu-10356/102173 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T02:24:09Z |
| publishDate | 2014 |
| record_format | dspace |
| spelling | ntu-10356/1021732020-03-07T12:10:41Z Bank ownership and efficiency in the aftermath of financial crises : evidence from Indonesia Riyanto, Yohanes Eko Parinduri, Rasyad A. School of Humanities and Social Sciences DRNTU::Social sciences::Economic development::Indonesia DRNTU::Social sciences::Economic theory::Public finance DRNTU::Social sciences::Economic theory::Money and banking This paper examines the relationship between types of ownership of banks and their efficiency in the aftermath of a financial crisis using Greene's “true” panel data stochastic frontier model, which takes into account unobserved heterogeneity among banks. The Indonesian banking sector is analyzed using financial data of 144 banks operating in Indonesia over the period of 2000Q4–2005Q2. In the aftermath of the 1997 Asian financial crisis, the cost efficiency of all banks improves over time on average. However, there is some evidence that, as these banks improve their efficiency, state-owned banks are the least efficient banks while joint-venture and foreign-owned banks are the most efficient. Published version 2014-06-27T02:53:27Z 2019-12-06T20:50:50Z 2014-06-27T02:53:27Z 2019-12-06T20:50:50Z 2014 2014 Journal Article Parinduri, R. A., & Riyanto, Y. E. (2014). Bank Ownership and Efficiency in the Aftermath of Financial Crises: Evidence from Indonesia. Review of Development Economics, 18(1), 93-106. 1363-6669 https://hdl.handle.net/10356/102173 http://hdl.handle.net/10220/19915 10.1111/rode.12071 en Review of development economics © 2014 John Wiley & Sons Ltd. This paper was published in Review of development economics and is made available as an electronic reprint (preprint) with permission of John Wiley & Sons Ltd. The paper can be found at the following official DOI: [http://dx.doi.org/10.1111/rode.12071]. One print or electronic copy may be made for personal use only. Systematic or multiple reproduction, distribution to multiple locations via electronic or other means, duplication of any material in this paper for a fee or for commercial purposes, or modification of the content of the paper is prohibited and is subject to penalties under law. 14 p. The authors thank Jung Hur, Changhui Kang, Basant Kapur, Shandre M. Thangavelu and Julian Wright for their helpful comments. They also thank Riza Haryadi, Dian Oktariani and Makin Toha of Bank Indonesia for providing them with the dataset. Research grants from the Nanyang Technological University are also acknowledged. application/pdf |
| spellingShingle | DRNTU::Social sciences::Economic development::Indonesia DRNTU::Social sciences::Economic theory::Public finance DRNTU::Social sciences::Economic theory::Money and banking Riyanto, Yohanes Eko Parinduri, Rasyad A. Bank ownership and efficiency in the aftermath of financial crises : evidence from Indonesia |
| title | Bank ownership and efficiency in the aftermath of financial crises : evidence from Indonesia |
| title_full | Bank ownership and efficiency in the aftermath of financial crises : evidence from Indonesia |
| title_fullStr | Bank ownership and efficiency in the aftermath of financial crises : evidence from Indonesia |
| title_full_unstemmed | Bank ownership and efficiency in the aftermath of financial crises : evidence from Indonesia |
| title_short | Bank ownership and efficiency in the aftermath of financial crises : evidence from Indonesia |
| title_sort | bank ownership and efficiency in the aftermath of financial crises evidence from indonesia |
| topic | DRNTU::Social sciences::Economic development::Indonesia DRNTU::Social sciences::Economic theory::Public finance DRNTU::Social sciences::Economic theory::Money and banking |
| url | https://hdl.handle.net/10356/102173 http://hdl.handle.net/10220/19915 |
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