The Role of Governance, ICT and Bad Loans in Australian Bank Efficiency: An Empirical Study

SALIM, RUHUL A. and Hoque, Mohammad Ziaul and ., Suyanto (2010) The Role of Governance, ICT and Bad Loans in Australian Bank Efficiency: An Empirical Study. The Asia Pacific Journal of Economics and Business, 14 (1). pp. 18-36. ISSN 1326-8481

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Abstract

This paper analyzes the impact of governance, information and communications technology (ICT) and bad loans on bank efficiency over the period 1997–2007. Using linear programming–based data envelopment analysis, the study shows that the overall efficiency of Australian banks is influenced by a consistent growth of technical efficiency since 1997, with major banks showing relatively higher levels of technical efficiency than regional banks. The results from the Malmquist productivity index reveal that technological progress contributes substantially to banks’ productivity growth. Furthermore, the results from the common effect panel data model show that bad loans and poor governance have negative effects while ICT has a positive impact on banks’ technical efficiency.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Faculty of Business and Economic > Department of Economic
Depositing User: Suyanto 3198
Date Deposited: 10 Aug 2015 01:42
Last Modified: 02 Sep 2018 17:54
URI: http://repository.ubaya.ac.id/id/eprint/25174

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