Productive Efficiency Performance of Minority and Nonminority-Owned Banks: A Nonparametric Approach

Journal of Banking and Finance 16 (1992) 933-948

Fox School of Business Research Paper

16 Pages Posted: 17 Jun 2014

See all articles by Elyas Elyasiani

Elyas Elyasiani

Temple University - Department of Finance

Seyed Mehdian

Ohio State University

Date Written: November 1989

Abstract

This study examines the efficiency performance of the minority-owned banks (MOBS) as multiproduct firms relative to that of the nonminority banks (NMOBs) using a highly flexible nonparametric approach. Since MOBS and NMOBs employ distinct technologies the efficiency indices for the two groups are derived relative to their respective group-specific frontiers and are contrasted to shed light on the ownership-efficiency relationship. The MOB sample is then disaggregated and the intra-group efficiency differentials are investigated. The findings support the hypothesis that abstracting the regional, regulatory, size, and maturity characteristics of banks, efficiency differentials between MOBS and NIMOBs are statistically insignificant.

Suggested Citation

Elyasiani, Elyas and Mehdian, Seyed, Productive Efficiency Performance of Minority and Nonminority-Owned Banks: A Nonparametric Approach (November 1989). Journal of Banking and Finance 16 (1992) 933-948; Fox School of Business Research Paper. Available at SSRN: https://ssrn.com/abstract=2451200

Elyas Elyasiani (Contact Author)

Temple University - Department of Finance ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States
215-204-5881 (Phone)
215-204-5698 (Fax)

Seyed Mehdian

Ohio State University ( email )

410 Arps Hall
1945 N. High St.
Columbus, OH 43210-1172
United States
614-366-9253 (Phone)

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