Abstract

http://ssrn.com/abstract=391668
 
 

References (29)



 
 

Citations (17)



 


 



Efficiency and Stock Performance in European Banking


Elena Beccalli


Catholic University of the Sacred Heart of Milan - Institute of Economy and Finance

Barbara Casu


City University London - Sir John Cass Business School

Claudia Girardone


University of Essex - Essex Business School


EFMA 2003 Helsinki Meetings

Abstract:     
During the past decades, competitive pressures have increasingly driven banks to change the strategic focus on generating returns to shareholders. All things being equal, cost efficient banks should be more profitable and therefore generate greater shareholder returns. The purpose of this paper is to contribute further evidence on bank efficiency by defining alternative efficiency measures and investigating the link between such measures and the market performance of financial institutions. Employing Data Envelopment Analysis (DEA) and Stochastic Frontier Approach (SFA) we estimate measures of bank cost efficiency for a sample of European banks listed in the year 2000. The results seem to indicate that percentage change in stock prices reflect percentage change in cost efficiency, particularly those derived from DEA. This suggests that stocks of cost efficient banks tend to outperform their inefficient counterparts.

Number of Pages in PDF File: 17

Keywords: Efficiency, Market performance, DEA, SFA, European Banking

JEL Classification: G21

working papers series


Download This Paper

Date posted: April 24, 2003  

Suggested Citation

Beccalli, Elena and Casu, Barbara and Girardone, Claudia, Efficiency and Stock Performance in European Banking. EFMA 2003 Helsinki Meetings. Available at SSRN: http://ssrn.com/abstract=391668 or http://dx.doi.org/10.2139/ssrn.391668

Contact Information

Elena Beccalli
Catholic University of the Sacred Heart of Milan - Institute of Economy and Finance ( email )
Via Necchi 5
20123 Milano
Italy
Barbara Casu
City University London - Sir John Cass Business School ( email )
106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
Claudia Girardone (Contact Author)
University of Essex - Essex Business School ( email )
Wivenhoe Park
Colchester CO4 3SQ
United Kingdom
+44 1206874156 (Phone)
+44 1206873429 (Fax)
HOME PAGE: http://www.essex.ac.uk/ebs/staff/profile.aspx?ID=1045
Feedback to SSRN


Paper statistics
Abstract Views: 3,910
Downloads: 990
Download Rank: 10,698
References:  29
Citations:  17

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.391 seconds