Banks' Types of Ownership and Efficiency: Evidence from Indonesia

Posted: 17 Apr 2009

See all articles by R. A. Parinduri

R. A. Parinduri

Nottingham University Business School, Malaysia Campus

Yohanes E. Riyanto

Nanyang Technological University (NTU) - Division of Economics

Date Written: April 16, 2009

Abstract

We examine the relationship between banks' types of ownership and banks' efficiency using Greene's "true" panel data stochastic frontier model. We find that, even after taking unobserved heterogeneity more properly into account, state-owned banks in Indonesia are the least efficient banks and joint-venture banks are the most efficient ones.

Keywords: banking, ownership types, efficiency, stochastic frontier

JEL Classification: C23, G21

Suggested Citation

Parinduri, Rasyad A. and Riyanto, Yohanes E., Banks' Types of Ownership and Efficiency: Evidence from Indonesia (April 16, 2009). Nottingham Univ. Business School Malaysia Campus Research Paper No. 2009-04. Available at SSRN: https://ssrn.com/abstract=1386187

Rasyad A. Parinduri (Contact Author)

Nottingham University Business School, Malaysia Campus ( email )

Wisma MISC
No. 2 Jalan Conlay
Kuala Lumpur, Selangor 43500
Malaysia

Yohanes E. Riyanto

Nanyang Technological University (NTU) - Division of Economics ( email )

HSS 04-53, 14 Nanyang Drive
Singapore, 639798
Singapore

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