Nerlovian revenue inefficiency in a bank production context: evidence from Shinkin banks

Fukuyama, Hirofumi; Matousek, Roman

Abstract

The paper further advances the contemporary methodological and empirical research on bank efficiency. We introduce a bank two-stage network revenue decomposition analysis based on the slack-based directional inefficiency measurement framework, by building upon the approaches of Epure and Lafuente (2015), Fukuyama and Weber (2009, 2010), Fukuyama and Matousek (2017) and Färe, Fukuyama, Grosskopf and Zelenyuk (2015, 2016). We apply the model on the segment of Japanese financial institutions – Shinkin banks. We examine the efficiency performance of Shinkin banks during the period from March 2007 to March 2015. This covers the recent years after the turmoil in the US subprime residential mortgage market which started early 2007. The applied innovative framework is particularly suitable for this type of banks since the financing of their business activities is mainly dependent on the different types of deposits that the proposed model takes into consideration.

Citation

Fukuyama, H., & Matousek, R. (2018). Nerlovian revenue inefficiency in a bank production context: evidence from Shinkin banks. European Journal of Operational Research, 271(1), 317-330. https://doi.org/10.1016/j.ejor.2018.05.008

• Journal Article Type: Article
• Acceptance Date: Apr 4, 2018
• Online Publication Date: May 16, 2018
• Publication Date: Nov 16, 2018
• Deposit Date: May 8, 2018
• Publicly Available Date: May 17, 2020
• Journal: European Journal of Operational Research
• Print ISSN: 0377-2217
• Electronic ISSN: 1872-6860
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 271
• Issue: 1
• Pages: 317-330
• DOI: https://doi.org/10.1016/j.ejor.2018.05.008
• Keywords: Data envelopment analysis (DEA); revenue efficiency; directional distance function; slack-based technical inefficiency, banking
• Public URL: https://nottingham-repository.worktribe.com/output/950833
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0377221718303862
• Additional Information: This is a post-peer-review, pre-copyedit version of an article published in Central European Journal of Operations Research. The final authenticated version is available online at: http://dx.doi.org/10.1016/j.ejor.2018.05.008
• Contract Date: May 8, 2018