Details

Autor(en) / Beteiligte

• Huang, Li-Hua
• Hsiao, Hsing-Chin
• Cheng, Mei-Ai
• Chang, Shyr-Juh

Titel

Effects of financial reform on productivity change

Ist Teil von

• Industrial management + data systems, 2008-08, Vol.108 (7), p.867-886

Ort / Verlag

Wembley: Emerald Group Publishing Limited

Erscheinungsjahr

2008

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• Purpose - The aim is to investigate the effects of the first financial restructuring (FFR) on productivity growth, technical progress and efficiency change, using data from 42 commercial banks in Taiwan from 2001 to 2004.Design methodology approach - Data envelopment analysis is applied to compute the Malmquist index of productivity change.Findings - It is found that Taiwan commercial banks on average experienced a 117.39 percent increase in productivity growth, of which is 2.11 percent is due to efficiency change and 115.28 percent to technical progress over the four year period. In addition, during the four year period, a 1 percent reduction in the nonperforming loan ratio resulted in 1.85 percent growth in productivity; a 1 percent increase in the capital adequacy ratio led to 2.15 percent growth in productivity.Practical implications - It can be concluded that after the FFR, the productivity growth, technical progress, and efficiency change all improve, with the lower nonperforming loan ratio contributing to this improved performance.Originality value - The study provides evidence of the productivity change of the banking industry in Taiwan in response to the FFR. It also contributes additional empirical evidence on the impact of a reform on bank productivity in a developing country.