{"corpus_id":34070303,"paper_sha":"c8c5fe06dc2ede9966e673daa52c720c7ac42212","doi":"10.1016/j.eswa.2017.12.010","arxiv_id":null,"pmid":null,"pmcid":null,"mag_id":2774584455,"dblp_id":"journals/eswa/FernandesSB18","acl_id":null,"title":"Two-stage DEA-Truncated Regression: Application in banking efficiency and financial development","year":2018,"publication_date":"2018-04-15","venue":"Expert systems with applications","journal":{"name":"Expert Syst. Appl.","pages":"284-301","volume":"96"},"journal_issn":null,"journal_title":null,"publication_types":["JournalArticle"],"pubmed_pub_types":null,"s2_fields_of_study":["Business","Economics","Computer Science"],"reference_count":87,"citation_count":116,"influential_citation_count":6,"is_open_access":true,"arxiv_categories":null,"arxiv_license":null,"arxiv_journal_ref":null,"mesh_headings":null,"chemicals":null,"comments_corrections":null,"source_flags":1,"s2_open_access_pdf_url":"https://pure.coventry.ac.uk/ws/files/21554203/ESWA_Fernandes_et_al._2018_.pdf","s2_open_access_landing_url":"https://www.semanticscholar.org/paper/c8c5fe06dc2ede9966e673daa52c720c7ac42212","s2_open_access_license":"CCBYNCND","s2_open_access_status":"GREEN","pmc_open_access_pdf_url":null,"pmc_open_access_landing_url":null,"pmc_open_access_license":null,"pmc_open_access_status":null,"unpaywall_open_access_pdf_url":null,"unpaywall_open_access_landing_url":null,"unpaywall_open_access_license":null,"unpaywall_open_access_status":null,"abstract":"DEA-Double Bootstrapped Truncated Regression is proposed for banking efficiency.We evaluate risk variables as determinants of European domestic banks efficiency.The impact of financial development in the countries under study is examined.The results indicate the existence of a periphery banks efficiency meta-frontier.Banks efficiency is more affected in lower levels of financial development. This study evaluates the efficiency of peripheral European domestic banks and examines the effects of bank-risk determinants on their performance over 20072014. Data Envelopment Analysis is utilised on a Malmquist Productivity Index in order to calculate the bank efficiency scores. Next, a Double Bootstrapped Truncated Regression is applied to obtain bias-corrected scores and examine whether changes in the financial conditions affect differently banks efficiency levels. The analysis accounts for the sovereign debt crisis period and for different levels of financial development in the countries under study. Such an application in the respective European banking setting is unique. The proposed method also copes with common misspecification problems observed in regression models based on efficiency scores. The results have important policy implications for the Euro area, as they indicate the existence of a periphery efficiency meta-frontier. Liquidity and credit risk are found to negatively affect banks productivity, whereas capital and profit risk have a positive impact on their performance. The crisis period is found to augment these effects, while bank-risk variables affect more banks' efficiency when lower levels of financial development are observed.","claims":[{"public_id":"cl_59a996d48755bc46e209d74e1e13588b","status":"active","text":"A periphery banks efficiency meta-frontier exists in the European banking setting.","confidence":0.95,"contributors":[{"id":1,"public_id":"12632b8b5f","public_label":"Anonymous (12632b8b5f)","roles":["extraction"],"url":"https://sah.borca.ai/u/12632b8b5f"}],"url":"https://sah.borca.ai/claims/cl_59a996d48755bc46e209d74e1e13588b"},{"public_id":"cl_6079467383f7f8fb0309533f0084533d","status":"active","text":"Bank-risk variables affect banks' efficiency more strongly at lower levels of financial development, and the sovereign debt crisis period amplifies these effects.","confidence":0.94,"contributors":[{"id":1,"public_id":"12632b8b5f","public_label":"Anonymous 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