An evaluation of the productive efficiency of savings and loans

Robert C.W. Fok*, Sung Ko LI, J. Howard Finch

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

A nonparametric linear programming approach is adopted to measure the productive efficiency of thrift financial institutions. The methodology is applied to a sample of California thrifts in 1989, yielding high mean efficiency scores. High efficiency scores correspond to high levels of operating efficiency. Estimation of a truncated regression model indicates that the major determinants of thrift efficiency are organization form, management style, risk, and firm size. Applying the methodology to a subset of thrifts from 1986 which had failed by 1989 shows technical inefficiency to be a significant indicator of a high probability of failure.

Original languageEnglish
Pages (from-to)75-90
Number of pages16
JournalJournal of Economics and Finance
Volume19
Issue number2
DOIs
Publication statusPublished - Jun 1995

Scopus Subject Areas

  • Finance
  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'An evaluation of the productive efficiency of savings and loans'. Together they form a unique fingerprint.

Cite this