X-Efficiency among Chinese Banks

Roger Frantz, Brandyn Churchill, Taylor Mackay
2015 Open Journal of Social Sciences  
X-efficiency is a non-allocative form of efficiency first introduced by Harvey Leibenstein in 1966. The degree of x-efficiency is measured by the deviation of a firm's costs of production from the technologically minimum costs of production. X-efficiency theory predicts that firms will produce closer to their cost function when they face pressure to do so. In this paper we review studies of X-efficiency among Chinese banks. These studies include the effect of ownership form, ex., state-owned
more » ... ex., state-owned banks versus privately-owned banks, on costs of production. China's entrance into the WTO, the effect of a bank issuing an IPO, and the effect of bank size are other topics of empirical studies reviewed in this paper. In addition some studies on Hong Kong banks before 1997 are included.
doi:10.4236/jss.2015.33013 fatcat:q4tlqjurv5ghnn4hogyg44hjiu