Cátedra Santander en Eficiencia y Productividad

Sorry, this entry is only available in European Spanish.

Sorry, this entry is only available in European Spanish.

Sorry, this entry is only available in European Spanish.

Sorry, this entry is only available in European Spanish.

Sorry, this entry is only available in European Spanish.

Sorry, this entry is only available in European Spanish.

Sorry, this entry is only available in European Spanish.

Sorry, this entry is only available in European Spanish.

Título: Achieving a sustainable cost efficient business model in banking: The case of European banks

Ponente: Ana Lozano‐Vivas University of Malaga, Spain

Fecha: Viernes 14 de julio de 2017 a las 10:00

Lugar: Sala de seminarios, Edificio Torretamarit, Universidad Miguel Hernández (Campus de Elche)

Resumen:

Although the business model (BM) is the most fundamental task of the bank’s management to ensure sustained operation and profitability of a bank, it has become a subject of supervisor’s scrutiny due to the recent financial crisis when failing banks were rescued with public funds and supervisors were criticized around the world. Since one of the reasonsfor the financial crisis wasthatsome banks had (and still have) unsustainable BMs, sustainable BMs are, for example, on the top of the ECB’s agenda. Given its relevance, it is important to understand implication that BM characteristics have for bank performance in general and for cost efficiency in particular. Optimizing operating efficiency has become a necessity for the survival of bank. This is one of the top priorities for a bank, especially during times when revenue‐generating opportunities are sub‐optimal. This paper usesthe Herfindahl index to measure how concentrate the bank isin items of the asset, funding or income portfolio. We analyze efficiency of bank BM along three business dimensions, viz., assets, funding and income, for the European Banking Industry. We apply recently developed four component heteroskedastic cost model to investigate effects of three business dimensions to time‐ varying bank cost inefficiency while controlling for bank effects and persistent cost inefficiency. In the proposed model we assume bank‐specific effects and persistent cost inefficiency random and distributed independently and identically across banks but time‐varying cost inefficiency and noise terms are made heteroscedastic in terms of assets, funding and income diversification for each bank. Note that we are interpreting heteroscedasticity of the noise term as risk thereby meaning whether different forms of diversifications are risk enhancing or risk reducing.

Title: Measuring Productivity Change Accounting for Adjustment Costs: Evidence from the Food Industry in the European Union

Speaker: Magdalena Kapelko, Wroclaw University of Economics, Institute of Applied Mathematics, Department of Logistics

Date: 11/07/2017, 10:00h

Location: Sala de Seminarios (Edificio Torretamarit), Universidad Miguel Hernández (Campus de Elche) 

Abstract: This paper extends the measurement of dynamic productivity change over time to provide its full decomposition into economically meaningful components in the Data Envelopment Analysis framework. The dynamic approach accounts for dynamics of production decisions via adjustment costs and is visualized as a dynamic Luenberger productivity change indicator. The paper also estimates the dynamic productivity change and its components for a large dataset of European food companies from 2004 till 2012, grouped into Eastern, Southern, and Western regions. The study reveals three main results. First, the overall trend of dynamic technical regress and positive dynamic technical inefficiency change across almost all regions and sectors was found. Second, some differences for this general pattern were found for the bakery industry and for Eastern European firms. Thirdly, there are also some remarkable changes in indicators observed during the periods related to the financial crisis and the volatility of agricultural commodity prices.