This study investigates the Italian SBs sector efficiency over the 2012– 2013 period. The measure of efficiency is estimated via SBM Data Envelopment Analysis. In the first stage, we evaluate the SBs efficiency while in the second we compare the performance of SBs belonging to bank groups with those stand-alone. To evaluate the impact of be part of a bank group we use Policy Evaluation tools, performing an impact evaluation with the controlled by a group considered as the “treatment” variable and checking for relevant banking ratios. To deal with selfselection bias (heterogeneity in treatment propensity related to variables), we use the PS Matching estimating the average treatment effects with the Ichino-Becker propensity scores. The research novelty resides in the combined application of DEA and Policy Evaluation tools for the specific field. Results show that when comparing SBs belonging to a banks group with stand-alone SBs, although a positive but not significant ATT, we find no relevant differences between the SBs part of group and the stand-alone. However, with reference to Technical Efficiency the stand-alone SBs experience the worst performance while after an insight into the inefficiency decomposition is clear that difficulties are due to managerial inefficiency. Finally, we present speculation, linked to real circumstances, with respect to the Italian SBs sector

Italian Saving Banks efficiency, is unity strength? Bank groups versus stand-alone

ALFIERO, SIMONA;ESPOSITO, ALFREDO;
2016

Abstract

This study investigates the Italian SBs sector efficiency over the 2012– 2013 period. The measure of efficiency is estimated via SBM Data Envelopment Analysis. In the first stage, we evaluate the SBs efficiency while in the second we compare the performance of SBs belonging to bank groups with those stand-alone. To evaluate the impact of be part of a bank group we use Policy Evaluation tools, performing an impact evaluation with the controlled by a group considered as the “treatment” variable and checking for relevant banking ratios. To deal with selfselection bias (heterogeneity in treatment propensity related to variables), we use the PS Matching estimating the average treatment effects with the Ichino-Becker propensity scores. The research novelty resides in the combined application of DEA and Policy Evaluation tools for the specific field. Results show that when comparing SBs belonging to a banks group with stand-alone SBs, although a positive but not significant ATT, we find no relevant differences between the SBs part of group and the stand-alone. However, with reference to Technical Efficiency the stand-alone SBs experience the worst performance while after an insight into the inefficiency decomposition is clear that difficulties are due to managerial inefficiency. Finally, we present speculation, linked to real circumstances, with respect to the Italian SBs sector
34th International Conference Mathematical Methods in Economics MME 2016
Liberec, Czech Republic
September 6th – 9th, 2016
Mathematical Methods in Economics MME 2016
Technical University of Liberec
7
13
978-80-7494-296-9
Saving Banks, Efficiency, Data Envelopment Analysis, Policy Evaluation, Average Treatment Effect on the Treated
Alfiero, Simona; Elba, Filippo; Esposito, Alfredo; Resce, Giuliano
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2318/1607051
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