A study of the relationship between employee wage and commercial banks efficiency in China

2016 ◽  
Vol 7 (2) ◽  
pp. 147-159
Author(s):  
Jiangtao Li ◽  
Jianyue Ji ◽  
Yanxia Wang
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Calculated Data ◽  
Wage Structure ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Content Type ◽  
Per Capita ◽  
The Impact ◽  
The Relationship

Purpose Efficiency of a commercial bank affects both its competitiveness and the role it plays in the process of economic development. Although great efforts have been exerted in developing the various aspects of banking efficiency, there seems to be a lack of research on examining the impact of the bank efficiency from the employee wage perspective. The mechanism of how employee wage affects commercial bank efficiency and the relationship between the two were analyzed in this paper. Based on the growing body of research on efficiency in banking, the aim of this paper is to examine if competitiveness of employee wages at any commercial bank has any impact on the bank efficiency score. Design/methodology/approach The method used was quantitative analysis, which was based on comparing the evaluated efficiencies of the banks with employee wages published in the bank reports. The empirical data in this paper were based on 16 Chinese listed commercial banks from 2004 to 2012. The per capita wage of commercial banks was selected as the wage indicator, and the efficiency value obtained by the slack-based measure (SBM) model was selected as the efficiency indicator. According to the calculated data, the Tobit regression model was built to analyze the relationship between employee wage and commercial bank efficiency. Findings The research results show that employee wage is the key variable that influences the efficiency of Chinese commercial banks, and the inverted U-shaped relationship between employee wage and commercial banks efficiency shows up. Practical implications The wage structure data of the composition of basic pay and bonus were not available at the time of conducting the research. Per capita wages were used instead to reflect the employee wage levels of Chinese banks. Originality/value This study can provide some help for the banking industry by analyzing the wage levels from the perspective of efficiency and also further enriches the theoretical system of the relationship between employee wage and bank efficiency.

Can labor productivity growth reduce carbon emission? Evidence from OECD countries and China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xueli Chen ◽  
Wanshu Ma ◽  
Vivian Valdmanis
Keyword(s):  
Labor Productivity ◽  
Fixed Effects ◽  
Oecd Countries ◽  
Environmental Indicators ◽  
Ekc Hypothesis ◽  
Initial Development ◽  
Content Type ◽  
Per Capita ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study is to examine the challenges involved in the trade-offs of labor productivity and per capita carbon dioxide (CO2) emission.Design/methodology/approachIn this research, we used a balanced dataset of 36 OECD countries and China between 1990 and 2018. We examined the relationship between labor productivity and per capita CO2 emission for OECD countries and China based on an Environmental Kuznets Curve (EKC) hypothesis. Further, the fixed effects model of estimation was employed to examine the impact of variables during the sample period and explore the relationship between predictor and outcome variables within an entity while controlling for all time-invariant differences.FindingsThis study confirmed the existence of the N-shape EKC hypothesis in 36 OECD countries and China. This implies that at the initial development stage, per capita CO2 emission increased with labor productivity; however, after reaching certain threshold, per capita CO2 emission began to fall with rising labor productivity. Then the per capita CO2 emission rises again when labor productivity continually increases.Originality/valueIn this study, we explored the dynamic association between labor productivity and per capita CO2 emissions for 36 OECD countries and China under the EKC framework from 1990 to 2018 by using the labor productivity and per capita CO2 emission as economic and environmental indicators of one country respectively. This study’s contribution showed the following: first, the empirical findings confirmed the N-shape relationship between labor productivity and per capita CO2 emissions for 36 OECD countries and China; second, the findings demonstrated that the association among the underlying variables by testing through the fixed effect model.

scholarly journals Commercial Bank Money, Seigniorage, and the Macroeconomy

2018 ◽  
Author(s):  
Biagio Bossone
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Equilibrium Prices ◽  
Different Types ◽  
Money Creation ◽  
Fractional Reserves ◽  
Macroeconomic Implications ◽  
The Impact ◽  
The Relationship ◽  
Bank Money

This article evaluates the macroeconomic implications of commercial bank seigniorage, which emerges from the commercial banks’ power to create money in a fractional reserves regime. After evaluating the impact on aggregate output of commercial bank money relative to alternative exchange arrangements, the article identifies the determinants of commercial bank seigniorage and analyzes how equilibrium prices are determined in an economy where commercial banks extract seigniorage. The article also identifies the conditions under which commercial banks extract seigniorage, clarifies the relationship between seigniorage from commercial bank money creation and profits from pure financial intermediation, and shows how commercial bank seigniorage changes with different types of interbank payments settlement.

Bank regulation and credit crunch: evidence from MENA region commercial banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chawki EL-Moussawi ◽  
Mohamad Kassem ◽  
Josse Roussel
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Explanatory Power ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Mena Region ◽  
Institutional Variables ◽  
Content Type ◽  
The Impact ◽  
The Relationship

PurposeThis paper focuses on the relationship between the regulatory capital requirements and the supply of credit for commercial banks that are operating in the MENA region from 1999 till 2017.Design/methodology/approachThe application of the Fixed Effects Model on a panel of commercial banks in the MENA region has shown a negative relationship between supply of credit and both the capital requirements and solvency ratios.FindingsThe results showed that the idiosyncratic, the macroeconomic and the institutional variables affect the supply of credit behavior of banks. The robustness tests using the Two-Stage Least Square method (2SLS) also led to a negative correlation between the growth of credit and capital requirements. Specific macroeconomic and institutional variables have revealed the expected sign and are significant regardless of the estimated specifications.Research limitations/implicationsThis work can be subjected to further future extensions. The explanatory power of our model can be improved by incorporating variables that reflect the corporate governance and structure of banking sector. Similarly, we can also include a variable that takes into account the increasing competition that could affect the stability of the banking sector and therefore the prudential banking regulation.Originality/valuePrevious studies that investigated only the relationship between capital level and risk-taking behavior of banks in the MENA region did not take into account neither the economic and institutional environment nor the impact of these regulations on credit (loans) supply.

scholarly journals Measuring Bank Efficiency: Evidence from the Tanzanian Banking Sector

2013 ◽  
Vol 8 (1) ◽  
pp. 1239-1251
Author(s):  
Zawadi Ally ◽  
Dr. G.N. Patel
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Parametric Approach ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Constant Return ◽  
Crs Model

The objective of this study is to measure the efficiency of commercial banks in Tanzania using a non-parametric approach, the input-oriented data envelopment analysis (DEA), both by constant return to scale (CRS) and variable return to scale (VRS). For this purpose, two outputs representing total loans and total interest income, and three inputs representing total deposits, the number of employees and total expenses are selected for seven-years (2006-2012) period in the analysis. The findings under CRS model identify four banks to be fully efficient in the year 2006, two banks in 2007 and one bank in 2008, 2009, 2010, 2011 and 2012, while VRS model results identify five banks to be fully efficient in the year 2006 and 2012, three banks in 2007 and two banks in 2008 and 2009, one bank 2010 and 2011. Four banks, Standard Charted bank, National Commercial Bank (NBC), Citibank and Barclays bank are found to be the most efficiency banks in Tanzania, which serve as the benchmark peers for inefficient banks in the sample, In addition Tobit regression has been used to determine the efficiency drivers.

scholarly journals Lending and Cash Required Reserve: Empirical Evidence from Ethiopian Commercial Bank

2018 ◽  
Vol 14 (13) ◽  
pp. 179 ◽  
Author(s):  
Mitku Malede Yimer
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Predictor Variable ◽  
Bank Lending ◽  
Least Square ◽  
Financial Data ◽  
Ordinary Least Square ◽  
Credit Creation ◽  
The Impact ◽  
The Relationship

The study was mainly intended to determine the effect of cash required reserve on commercial bank lending in Ethiopia using panel data of eight purposively chosen commercial banks over the period of eleven years (2005 to 2015). The investigation tested the relationship between commercial bank lending and cash required reserve. Eleven years financial data of eight purposively chosen commercial banks were used for analysis purpose. Ordinary least square model was applied to test the impact of predictor variable on commercial bank lending. The result suggests that, there is no significant relationship between commercial bank lending and cash required reserve in Ethiopian commercial. This study suggests that commercial bank have to give less emphasis to cash required reserve because it doesn’t weakens banks credit creation ability and does not leads a bank to be insolvent.

The impact of product variety on fill rate, inventory and sales performance in the consumer goods industry

2020 ◽  
Vol 31 (7) ◽  
pp. 1481-1505
Author(s):  
Victor Santos ◽  
Mauro Sampaio ◽  
Dario Henrique Alliprandini
Keyword(s):  
Consumer Goods ◽  
Product Variety ◽  
Sales Performance ◽  
Tobit Regression ◽  
Fill Rate ◽  
Content Type ◽  
Regression Techniques ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

PurposeThe impact of product variety decisions on fill rate, inventory and sales performance in a consumer goods company has been examined. From a marketing perspective, it is possible to leverage sales, reach new segments and consequently increase competitiveness when there is a greater product variety on the market. However, operations and logistics professionals indicate potential impacts on the supply chain, such as production, storage and distribution complexity. The nature of the product variety-cost-sales performance relationship is not clear, and empirical evidence about whether and how operations cost and sales performance increases with variety is inconclusive.Design/methodology/approachThe multiple linear regression and the Tobit regression techniques were applied over a seven-year horizon of data from a business intelligence platform of a consumer goods company.FindingsOur results show that sales performance is negatively associated with product variety. The total effect of product variety on sales performance has been examined, including both the direct effect and the indirect effect through inventory and fill rate. Therefore, the findings provide a comprehensive understanding of the impact of product variety on operations and sales performance.Originality/valueSeveral studies have researched the impact of product variety on fill rate, inventory and sales performance separately; however, the research of the impact and the relationship of these factors is scarce and limited.

scholarly journals Inflation and Profitability of Commercial Banks in Rwanda: A Case Study of Bank of Kigali

2019 ◽  
Vol 14 (10) ◽  
pp. 35
Author(s):  
Gilbert Batsinda ◽  
Jaya Shukla
Keyword(s):  
Correlation Analysis ◽  
Financial Performance ◽  
Sample Size ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Descriptive Research ◽  
Demand Pull ◽  
The Impact ◽  
The Relationship

The study evaluates the impact of inflation on the profitability of commercial banks in Rwanda with specific focus on the Bank of Kigali. In Rwanda, the effect of inflation on the financial performance of commercial banks has not been adequately researched in relation to types of inflation. It is against this issue that the researcher wanted to carry out this research to find the relationship between inflation and profitability of commercial bank in Rwanda. The specific objectives of study were: to examine the trend of inflation in Rwanda; to examine the profitability of Bank of Kigali between 2011 and 2015; and to establish the relationship between inflation and profitability. To achieve objectives study used descriptive research design with population and sample size of 26 respondents. Correlation analysis is used to examine relationship between study variables. The study findings revealed that cost push inflation has positive high correlation to the Profitability of BK. Findings indicated that demand pull inflation and Monetary inflation has also positive high correlation profitability of Bank of Kigali. Finally it is concluded that the types of inflation affect commercial banks are cost push inflation, demand pull inflation and monetary inflation. Inflation has a significant role in enhancing commercial bank’s profitability.

scholarly journals TECHNIQUE OF ASSESSMENT OF THE IMPACT OF A REPUTATIONAL RISK ON STABILITY OF COMMERCIAL BANK

2020 ◽  
pp. 18-25
Author(s):  
Екатерина Алексеевна Бибикова ◽  
Ирина Валерьевна Курникова
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Credit Institution ◽  
Reputational Risk ◽  
Reputation Risk ◽  
Using Data ◽  
The Stability ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

At present, in Russia, when the revocation of licenses from credit organizations continues, the significance of reputational risks is growing sharply. In connection with this subject of research, reputational risk and its influence on maintaining the stability of a credit institution are presented in this article. The aim of the work is to develop a new methodology for assessing the impact of reputation risk on the stability of commercial banks, as well as the practical application of the method using data from a credit institution. As a result of the study, a specific methodology was compiled, which allows you to directly assess the reputation risk in a commercial bank; the relationship of this type of risk and the stability of the credit institution is determined; the methodology has been applied in practice using data from several commercial banks; It is shown how reputation risk can affect the stability of a credit institution. The presented article allows one to determine what is necessary to understand as reputational risk, why the assessment of reputational risk is of the same importance as the assessment of the stability of a credit institution, and what attention should be paid to the leaders of a credit institution so that their bank has a satisfactory level of reputational risk, and therefore , and level of sustainability

scholarly journals Bank efficiency and practice of earnings management: a study on listed commercial banks of Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naznin Sultana Chaity ◽  
K.M. Zahidul Islam
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Commercial Banks ◽  
Islamic Banks ◽  
Loan Loss ◽  
Bank Efficiency ◽  
Content Type ◽  
Empirical Results ◽  
Conventional Banks ◽  
The Relationship

PurposeThe purpose of the study is to determine the relationship between bank efficiency in terms of corporate governance guidelines and the extent of practice of earnings management (EM).Design/methodology/approachArchival data of listed private commercial banks of Dhaka Stock Exchange over the period of 2007–2016 relating to corporate governance and earnings management are collected and analyzed using parametric and non-parametric methods (efficiency analysis) and applying panel regression analysis.FindingsThe same distribution pattern and have low degree of the correlation (0.248) among them. It is found that private commercial banks of Bangladesh, on average, display efficiency level of 80.84%. The average value of discretionary loan loss provision (i.e. measure of earnings management) is 0.4249 and this indicates the presence of earnings management. The relation between earnings management and efficiency score in both cases of two-step system generalized methods of moments (GMMs) and difference GMM are found to be negative. The negative coefficients (−0.7969 and −0.57) indicate that as the efficiency increases, the practice of earnings management by the private commercial bank reduces. By estimating efficiency based on corporate governance guidelines and detecting the existence of EM, the major contribution of the study is establishing the relationship between bank efficiency based on compliance with corporate governance guidelines and managerial practice of earnings management in Bangladesh. Empirical results of the study have also established the fact that the more efficient the management of the banks are, the less likely it will practice earnings management under the compliance of corporate governance guidelines in Bangladesh.Research limitations/implicationsThis research study has some limitations. Only conventional banks are considered for the study, with the exception of Islamic banks. Comparison between conventional banks and Islamic banks could have been done.Practical implicationsBased on the literature study, the effectiveness of corporate governance aligns with decreasing agency conflict, protection of shareholders' interests and restrain management from self-serving activities (i.e. practice of earnings management). The empirical results of the study established these facts. Regulators should give more emphasis on effective implementation of good governance.Originality/valueTo the best of the authors' knowledge, this may be the first to empirically determine the relationship between efficiency estimation based on corporate governance and earnings management in case of listed commercial banks of Bangladesh.

scholarly journals Credit Management Practices, Loan Repayment Management and Profitability Of Commercial Banks’ Branches In Uganda.

2021 ◽  
Author(s):  
◽  
Anthony Elemu
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Management Practices ◽  
Mediating Effect ◽  
Loan Repayment ◽  
Credit Management ◽  
Bank Branches ◽  
The Impact ◽  
The Relationship

Background: The study examined the relationship between credit management practices, loan repayment management and profitability of commercial banks branches in Uganda. The objectives included; to establish the relationship between credit management practices and profitability; relationship between loan repayment management and profitability; mediating effect of loan repayment management on credit management practices and profitability; and examine the impact of credit management practices and loan repayment management on profitability. Methodology: The study was a cross- sectional research and applied a quantitative approach. A sample of 234 commercial bank branches was used from a total of 573. The study obtained responses from 166 branches. Primary data was obtained from a branch manager and credit supervisor using a structured questionnaire. Validity of the questionnaire was obtained using CVI and reliability using Cronbach Alpha Coefficient. Data was analyzed using SPSS v.20 to obtain descriptive statistics, correlation and regression analyzes to present results. A Med-graph was used to test the mediation of loan repayment management. Results: This study ascertained a positive relationship between credit management practices and profitability; and positive relationship between loan repayment management and profitability. The study further ascertained a partial mediation of loan repayment management in the relationship between credit management practices and profitability. Furthermore, the study revealed that jointly credit management practices and loan repayment management predict profitability of commercial bank branches. More so, the study established that the best predictor of profitability is loan repayment management. This study ascertained a positive relationship between credit management practices and profitability; and positive relationship between loan repayment management and profitability. Conclusion: The study concludes that credit management practices and loan repayment management are among the critical factors influencing profitability at the commercial bank branch level.

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