Relationship between concentration and cost and profit efficiency in the Czech banking sector
Result description
The paper estimates the relationship between the banking concentration and cost and profit efficiency in the Czech banking industry in the period 2001-2011. To es-timate the degree of banking concentration was used the concentration ratio and Herfindahl-Hirschman index and for estimation of the cost and profit efficiency of the Czech banks was applied the Stochastic Frontier Approach. In the Czech bank-ing sector it was found a slight decrease in concentration during the analyzed period. The efficiencyof the Czech banks increased in this period. Using a Johansen coin-tegration test the positive relationship between concentration and cost and profit ef-ficiency was estimated in the Czech banking sector. This result confirms the effi-ciency hypothesis.These findings suggest that the increase of banking concentra-tion will contribute to efficiency of the Czech banks.
Keywords
concentrationcost efficiencyprofit efficiencyrelationshipJohansen cointegration testCzech banking sector
The result's identifiers
Result code in IS VaVaI
Result on the web
—
DOI - Digital Object Identifier
—
Alternative languages
Result language
angličtina
Original language name
Relationship between concentration and cost and profit efficiency in the Czech banking sector
Original language description
The paper estimates the relationship between the banking concentration and cost and profit efficiency in the Czech banking industry in the period 2001-2011. To es-timate the degree of banking concentration was used the concentration ratio and Herfindahl-Hirschman index and for estimation of the cost and profit efficiency of the Czech banks was applied the Stochastic Frontier Approach. In the Czech bank-ing sector it was found a slight decrease in concentration during the analyzed period. The efficiencyof the Czech banks increased in this period. Using a Johansen coin-tegration test the positive relationship between concentration and cost and profit ef-ficiency was estimated in the Czech banking sector. This result confirms the effi-ciency hypothesis.These findings suggest that the increase of banking concentra-tion will contribute to efficiency of the Czech banks.
Czech name
—
Czech description
—
Classification
Type
D - Article in proceedings
CEP classification
AE - Management, administration and clerical work
OECD FORD branch
—
Result continuities
Project
—
Continuities
O - Projekt operacniho programu
Others
Publication year
2013
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of 31th International Conference Mathematical Methods in Economics 2013
ISBN
978-80-87035-76-4
ISSN
—
e-ISSN
—
Number of pages
6
Pages from-to
785-790
Publisher name
status-udaje="neuvedeno"
Place of publication
Jihlava
Event location
Jihlava
Event date
Sep 11, 2013
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
—
Result type
D - Article in proceedings
CEP
AE - Management, administration and clerical work
Year of implementation
2013