Efficiency determinants in Portuguese banking industry: an application through fractional regression models
The participation in the Euro area and the current financial crisis substantially conditioned the development of the Portuguese banking industry, for which is expected a continuous fall in income and a growing competitive pressure, improving the need to look carefully to issues as efficiency as...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
University of Algarve, ESGHT/CINTURS
2018-04-01
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| Series: | Tourism & Management Studies |
| Subjects: | |
| Online Access: | https://tmstudies.net/index.php/ectms/article/view/1072/pdf_100 |
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| Summary: | The participation in the Euro area and the current financial crisis
substantially conditioned the development of the Portuguese banking
industry, for which is expected a continuous fall in income and a
growing competitive pressure, improving the need to look carefully to
issues as efficiency as an essential survival factor. Efficiency indicators
of the main banks operating in Portugal were measured through DEA
methodology. The application of two-stage models allowed
circumventing the usual problems inherent to the coexistence of the
production and intermediation approaches. The application of
regression for proportions, more appropriate than traditional linear and
Tobit regressions, to deal with the fractional nature of the DEA scores,
allowed the identification of efficiency determinant factors for the main
banks operating in Portugal. The fractional regression models
demonstrate evidence of improved specification comparing to
traditional regression models. The variables that appear to major
influence on overall efficiency are internationalization, size and type of
ownership of capital. |
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| ISSN: | 2182-8466 |