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Journal of Asian Business and Economic Studies |
Vol. 26(01)
, April 2019, Page 02-16
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Incorporating risk into technical efficiency for Vietnam’s and ASEAN banks |
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Ngo Thanh Tra & Lê Quang Minh & Ngo Phu Thanh |
DOI: 10.1108/JABES-10-2018-0083
Abstract
Purpose – The purpose of this paper is to incorporate risk in technical efficiency of ASEAN banks in a panel data framework for the period 2000 to 2015.
Design/methodology/approach – The directional distance function and semi-parametric framework are employed to estimate efficiency scores for two scenarios, one with only good outputs and the other with a combination of good and bad outputs.
Findings – The findings show there is no evidence of technological progress for banks in ASEAN and concerns about the outperformance of Vietnam’s banks. In addition, performance of Vietnam’s banks tends to be distorted by low level of loan loss reserves.
Practical implications – To reflect the true performance and shorten the period of removing bad assets, the State Bank of Vietnam can request banks in Vietnam to book more loan loss reserves.
Originality/value – By examining such a new approach, this study makes an early attempt to incorporate credit risk into the banking efficiency in ASEAN region.
Keywords
Risk, Bank efficiency, Directional distance function, Semi-parametric estimation of stochastic frontier models
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Technical inefficiency of the manufacturing sector in Laos: a case study of the firm survey
2023, Journal of Asian Business and Economic Studies
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Abstract
Purpose
This study aims to unlock the path of growth for sustainable economic development and accomplish the government's vision 2030 by ameliorating the productivity of the manufacturing sector in Laos.
Design/methodology/approach
This study applied cross-sectional data of 2,009 firms from the national firm survey, namely the Economic Census Survey (ECS), in 2012/13 in addition to employing the stochastic frontier analysis (SFA) to assess the production frontier and factors behind the technical inefficiency to arrive at policy recommendations.
Findings
The study found that the efficiency level varied across subindustries with an average of 72.51% in full potential production. Out of the five classified groups, Sub4 (chemical and plastic) was found to be the most efficient manufacturer, while the rest in order are Sub1 (food and beverage), Sub5 (furniture and others), Sub2 (garment and textile), and Sub3 (paper and printing), providing the evidence to improve the technical efficiency. This study discovered that the firm's size, accounting system and credit access are crucial to enhancing the production efficiency of all sampling firms. However, these factors might be subject to specific industries.
Practical implications
For the implication to the business community and policymakers, the findings of this study could be a reference in terms of which areas they should concentrate on to improve the technical efficiency as a part of productivity in the manufacturing industry. For instance, it suggests that firms could improve their production efficiency by introducing the accounting system, laborers' skills (education of managers) and engaging in international trade activities. Additionally, it asks policymakers to help private firms by improving the infrastructure, credit access, training and trade facilitation.
Originality/value
It is believed that, as the major contribution in Lao literature, this study is the first research applying the largest data from the national survey – the Lao ECS – examining the technical efficiency in the manufacturing sector in the country, and overcoming the gap of the previous research which recruited few policy variables and applied a small sample size in one specific industry. Therefore, the findings of this study impart more insights into the analysis, providing more effective and credible recommendations to policymakers and firms to improve their technical efficiency and, consequently, their competitiveness.
Augmenting customer loyalty through customer experience management in the banking industry
2021, Journal of Asian Business and Economic Studies
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Abstract
Purpose
The purpose of this paper is to analyse and evaluate the effect of customer experience management (virtual interaction, physical interaction and service interaction) on customer loyalty in the banking industry.
Design/methodology/approach
The study followed an explanatory research design to sample 384 respondents. Stepwise regression analysis was used to validate the relevance of the study model.
Findings
The results indicated that there is a positive association between customer experience management and customer loyalty. The dimensions of customer experience management, namely virtual interaction, physical interaction and service interaction, were also found to be statistically significant in explaining customer loyalty behaviour.
Practical implications
The study practically influences the way banks and other financial institutions gain competitive advantage through managing the experiences of customers in a volatile business environment. At a time when banks are no longer the only providers of financial services, the study offers a road map to reduce portfolio purchasing and switching behaviour through enhanced experience management at all customer touch points.
Originality/value
The study presents an augmented model of customer experience management which is linked to consumer loyalty.
Efficiency of Foreign-Invested Transport Companies
2019, Journal of Asian Business and Economic Studies
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Abstract
The paper estimates technical performance of foreign-invested and local companies by analyzing a dataset for 11,210 companies in transport, warehousing and communication sector established by the GSO in 2010 and SFPF parameters. The results show that the average efficiency score of companies in this industry is 53.46%. These results also challenge the argument that performance of foreign-invested companies is always higher than that of local ones. On the contrary, type of companies is the main factor that affects the performance of foreign-invested companies in Vietnam JEL classification: F23, D24, C23.
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