Computing and Library Services - delivering an inspiring information environment

Efficiency in Banking: Does the Choice of Inputs and Outputs Matter?

Floros, Christos, Zopounidis, Constantin, Tan, Aaron Yong, Lemonakis, Christos, Garefalakis, Alexandros and Tabouratzi, Efthalia (2017) Efficiency in Banking: Does the Choice of Inputs and Outputs Matter? International Journal of Computational Economics and Econometrics. ISSN 1757-1170 (In Press)

[img] PDF - Accepted Version
Restricted to Repository staff only

Download (584kB)


This paper examines banking efficiency using recent data from PIGS countries (i.e.: Portugal, Italy, Greece and Spain) which suffer from debt problems. We employ a 2-stage approach based on the effect of several items of balance sheets on cash flows and DEA analysis. More specifically, we extend previous studies by giving attention to the deposit dilemma. The reported results show that the choice of inputs and outputs does matter in the case of European banking efficiency. Although the role of deposits is controversial, we find that deposits may be an output variable, due to liquidity issues that play major role in the efficiency of PIGS’ banking sector. We also report that the DEA model with deposits as an output variable generates efficiency scores that fall between periods. These results are helpful to bank managers and financial analysts dealing with efficiency modeling.

Item Type: Article
AuthorZopounidis, ConstantinUNSPECIFIEDUNSPECIFIED
AuthorTan, Aaron
AuthorGarefalakis, AlexandrosUNSPECIFIEDUNSPECIFIED
Subjects: H Social Sciences > HG Finance
Schools: Huddersfield Business School
Related URLs:
Depositing User: Yong (Aaron) Tan
Date Deposited: 06 Dec 2017 13:00
Last Modified: 28 Aug 2021 15:23


Downloads per month over past year

Repository Staff Only: item control page

View Item View Item

University of Huddersfield, Queensgate, Huddersfield, HD1 3DH Copyright and Disclaimer All rights reserved ©