Joint Study of Banks’ Risk Preferences and Technical Efficiency in Nine East Asia Countries

• Main Authors: Yun-Tien Tsai, 蔡昀恬
• Other Authors: Tai-Hsin Huang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/80907929345650560690

碩士 === 淡江大學 === 經濟學系碩士班 === 93 === In this study, we jointly consider the multiple output price risk and, production efficiency to analyze the performance of Nine East Asia Countries’ banks. We explicitly model bank managers’ risk attitude based on the safety first rule, under the framework of a two-output translog cost function. The derived three equations are then estimated by maximum likelihood, using a panel data set consisting of over the period 1994-2003. Base on the empirical results, bank managers of the seriously affected countries in the sample tend to be risk preferrers, while bank managers of the remaining countries are inclined to be less risk-loving.Evidence is found that banks in Thailand exhibit the highest average technical efficiency level, that constant returns to scale prevails in the banking industry, and that banks in Taiwan and Malaysia exhibit product mix economics, implying that banks in both countries may benefit by providing a variety of financial products.