Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2018.1545596
Efficiency dynamics of the Croatian banking industry: DEA investigation
Milivoje Davidovic
; Department of Economics, Northern Illinois University, DeKalb, IL, USA
Ozren Uzelac
; Department of Management, Faculty of Economics in Subotica, University of Novi Sad, Subotica, Serbia
Vera Zelenovic
; Department of Finance, Banking, Accounting and Auditing, Faculty of Economics in Subotica, University of Novi Sad, Subotica, Serbia
Sažetak
The paper deals with the efficiency dynamics of the Croatian
banking industry, covering the period from 2006 to 2015. We
have implemented the intermediation approach, using interest
and non-interest expenses and revenues as the input and output
variables, respectively. The variable return to scale (BCC) Data
Envelopment Analysis (DEA) output-oriented model has been
implemented, and we have estimated the crisis-driven efficiency
trends, as well as the impact of the EU membership. We further
estimated the efficiency effects of the relative market power/size,
ownership structure, and origin of capital. The global crisis had
detrimental effects since the overall efficiency score dropped by
about 3%. On the contrary, Croatian banks have largely benefited
from the EU membership, and the efficiency score after the EU
association increased by about 45%. The market leaders are more
efficient than the competitive fringe, which is in line with the efficiency structure hypothesis. In addition, the biggest banks are the
most efficient ones, meaning that the scale efficiency hypothesis
has also been upheld. Contrary to the agency theory hypothesis,
state-owned banks are permanently more efficient than private
banks. Finally, the results support the home-field advantage
hypothesis exclusively for the pre-crisis period (2006–2009).
Ključne riječi
BCC DEA output-oriented model; efficiency dynamics; Croatian banks
Hrčak ID:
216156
URI
Datum izdavanja:
22.1.2019.
Posjeta: 1.633 *