Ohene-Asare, Kwaku (2011) Nonparametric efficiency and productivity change measurement of banks with corporate social responsibilities : the case for Ghana. PhD thesis, University of Warwick.

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Abstract

This thesis has twofold objectives. The first is to develop a framework based on the
existing theory and method of Data Envelopment Analysis (DEA) for measuring
performance of financial firms that have the dual goals of profit maximisation and
Corporate Social Responsibilities (CSRs). The second is to examine the impact of
banking regulatory reforms including bank ownership, specialisation, and
capitalisation types on the average efficiency and frontier differences of banking
subgroups. The objectives are achieved using the standard DEA, the metafrontier
analysis and the global frontier differences (GFD). DEA can handle
multidimensional inputs and outputs without specifying specific functional forms.
CSR is conceptually justified and modelled as an additional output into the banking
intermediation approach. Two DEA models, one with CSR and another without
CSR are measured and compared. Parametric and nonparametric tests and
regressions are utilised to support, empirically, the relevance of CSR in bank
performance evaluation.
Do foreign banks outperform private-domestic and state banks? Should banks
diversify their products or focus in narrow range of products and services? Are
listed banks more efficient than non-listed banks? The second part of the thesis
contributes to the extant literature by answering these questions using the
metafrontier analysis and the GFD to provide new evidence on the effect that the
entry of foreign and private-domestic banks, universal banking and listing of banks
on the stock market, have on bank performance. Banks are segmented into groups
based on their bank-specific attributes and their average efficiencies and bestpractice
differences compared. Relevant policy recommendations are drawn from
the analysis for both the banking regulator and bank management.
The final methodological contribution extends the GFD by defining a further
decomposition of the global frontier shift, into components that indicate whether an
observation is situated in a more or less favourable location in the production
possibility set. Consequently, a four-factor “Newly-decomposed Malmquist
productivity change index” is proposed. The index and its decompositions have
potentially interesting policy implications, which are illustrated using the empirical
data on Ghanaian banks. The index is in the spirit of the standard Malmquist index
but the intuition is that some components can be used to draw conclusions about
productivity changes for a whole population of firms whilst others determine
whether individual firms are in favourable locations and/or moving towards
locations that are more favourable over time. More importantly, arguably, a listed,
universal or foreign bank can be located in a favourable position and move towards
location that is more favourable by virtue of its bank-specific attributes or by
contributing more towards CSR. These factors are explored and policy measures
prescribed in the final contribution of the thesis.

Item Type:	Thesis or Dissertation (PhD)
Subjects:	H Social Sciences > HG Finance
Library of Congress Subject Headings (LCSH):	Financial institutions, Data envelopment analysis, Social responsibility of business, Banks and banking, Banking law
Official Date:	October 2011
Dates:	Date Event October 2011 Submitted
Institution:	University of Warwick
Theses Department:	Warwick Business School
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Podinovski, Victor V. ; Asmild, Mette
Extent:	46, 302 leaves : ill., charts
Language:	eng

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