Banking Market Liberalization and Bank Performance: the Role of Entry Modes

This paper analyzes the evolution in bank performance following the removal of legal restrictions on the entry of foreign banks in three transition economies: the Czech Republic, Hungary, and Poland. Two modes of foreign bank entry are considered: entry by Greenfield investments, and by foreign mergers and acquisitions of domestic banks. For this purpose, we construct a panel data of banks from the three countries over the period 1994-2004. We determine the dates on which liberalization occurred in each country. Bank performance is reflected by accounting measures of profitability, net interest margin, and operating costs. The results show a very limited effect of the entry of Greenfield banks on domestic banking market in the early transition period. In contrast, the foreign entry by mergers and acquisitions of domestic banks exerts significant impacts on bank performance. Indeed, we observe significant declines in banks' profits and net interest margins, and a significant increase in operating costs. Our results have important policy implications for those emerging and transition economies still hesitant to liberalize their banking markets.http://deepblue.lib.umich.edu/bitstream/2027.42/64408/1/wp948.pd

Banking Market Liberalization and Bank Performance: the Role of Entry Modes

This paper analyzes the evolution in bank performance following the removal of legal restrictions on the entry of foreign banks in three transition economies: the Czech Republic, Hungary, and Poland. Two modes of foreign bank entry are considered: entry by Greenfield investments, and by foreign mergers and acquisitions of domestic banks. For this purpose, we construct a panel data of banks from the three countries over the period 1994-2004. We determine the dates on which liberalization occurred in each country. Bank performance is reflected by accounting measures of profitability, net interest margin, and operating costs. The results show a very limited effect of the entry of Greenfield banks on domestic banking market in the early transition period. In contrast, the foreign entry by mergers and acquisitions of domestic banks exerts significant impacts on bank performance. Indeed, we observe significant declines in banks' profits and net interest margins, and a significant increase in operating costs. Our results have important policy implications for those emerging and transition economies still hesitant to liberalize their banking markets.Banking, Transition Economies, Foreign Bank Entry, Greenfield Investment, Mergers and Acquisitions, Bank Performance.

Does the Entry Mode of Foreign Banks Matter for Bank Efficiency? Evidence from the Czech Republic,Hungary, and Poland

This paper investigates the impact of specific modes of entry of foreign banks, i.e. greenfield investment versus merger and acquisition, on bank performance in three transition economies ñ the Czech Republic, Hungary, and Poland. We use stochastic frontier analysis to model and measure the cost efficiency of banks. We adopt a maximum likelihood approach to estimation in which the variance of the one-sided error term is modeled jointly with the cost frontier, thus enabling us to retrieve efficiency scores, as well as estimating the various determinants of X-inefficiency. We first find that foreign banks are generally more cost efficient than their domestic counterparts, a result that confirms those of the existing empirical literature. We then turn our focus to comparative performance of greenfield banks versus merger and acquisition banks (M & As), and of M & As versus domestic banks. The results show that on average, M & As are surpassed in terms of efficiency by greenfields banks, but no cost efficiency difference is apparent between M & As and domestic banks. However, we find a strong age effect with respect to M & As which suggests that the evolution of M & Así efficiency follows an inverse U-shape, that means M & As tend to get more inefficient following the acquisition, but approximately 4 years and a haft later, their efficiency starts to improve.http://deepblue.lib.umich.edu/bitstream/2027.42/64431/1/wp925.pd

Does the Entry Mode of Foreign Banks Matter for Bank Efficiency? Evidence from the Czech Republic,Hungary, and Poland

This paper investigates the impact of specific modes of entry of foreign banks, i.e. greenfield investment versus merger and acquisition, on bank performance in three transition economies – the Czech Republic, Hungary, and Poland. We use stochastic frontier analysis to model and measure the cost efficiency of banks. We adopt a maximum likelihood approach to estimation in which the variance of the one-sided error term is modeled jointly with the cost frontier, thus enabling us to retrieve efficiency scores, as well as estimating the various determinants of X-inefficiency. We first find that foreign banks are generally more cost efficient than their domestic counterparts, a result that confirms those of the existing empirical literature. We then turn our focus to comparative performance of greenfield banks versus merger and acquisition banks (M&As), and of M&As versus domestic banks. The results show that on average, M&As are surpassed in terms of efficiency by greenfields banks, but no cost efficiency difference is apparent between M&As and domestic banks. However, we find a strong age effect with respect to M&As which suggests that the evolution of M&As’ efficiency follows an inverse U-shape, that means M&As tend to get more inefficient following the acquisition, but approximately 4 years and a haft later, their efficiency starts to improve.Banking, Transition Economies, Foreign Bank Entry, Greenfield, Mergers and Acquisitions, Stochastic Frontier Analysis, Cost Efficiency.

Exploring Listening Learning Strategies of L2 Students at Different Proficiency Levels

Enhancing second language (L2) listening skills is a major goal in L2 teaching and learning. Despite its importance, there are insufficient studies on the learning strategies L2 learners use during listening. Using a pilot research design, this study explored the similarities and differences in strategy use between high and low proficiency groups of 12 EFL learners in a semester-long course at a university in Vietnam. In addition to statistical analyses of the Strategy Inventory for Language Learning (SILL) questionnaire, the instructor’s interview data were analyzed. The findings revealed significant differences in the frequency of strategy use between the two groups; how-ever, both high and low proficiency groups experienced anxiety before listening tests or exams. Interestingly, all participants were actively engaged in teamwork, though the lower proficiency group sometimes hesitated to work with peers due to limited linguistic knowledge. The findings contribute to L2 listening teaching and learning, with suggestions for training courses in listening strategies

EVALUATING THE IMPLEMENTATION OF ACTION RESEARCH COURSE IN AN IN-SERVICE TEACHER TRAINING PROGRAM IN VIETNAM

The study investigated the effectiveness of Action Research Course, one of the five component courses of the in-service English teacher training program implemented by National Foreign Language 2020 Project in Vietnam. The primary purpose of the course is to help in-service teachers of English develop the ability to do action research in their teaching context. How effective the course is, what alternative strategies can be used for the implementation of the course, what problems prevent the course from meeting the need of the course’s participants, and what improvements should be made were examined in this study. The evaluation on the implementation of the Action Research applies Context, Input, Process and Product (CIPP) model, which is developed by Stuffflebeam to assess strengths and weaknesses of the course for accountability and improvement. A total of 30 in-service teachers of English were interviewed and course documents were reviewed to generate data. Data analysis reveals that the course is effective to develop in-service teachers’ ability to do action research though improvements should be made to textbook and practice session of the course.Keywords: Action research, CIPP model, evaluation, in-service teacher training, The National Foreign Language 2020 projectCite as: Anh, V.T.K. (2017). Evaluating the implementation of Action Research Course in an in-service teacher training program in Vietnam. Journal of Nusantara Studies, 2(2), 88-97.  http://dx.doi.org/10.24200/jonus.vol2iss2pp88-9

An explicit Fourier-Klibanov method for an age-dependent tumor growth model of Gompertz type

This paper proposes an explicit Fourier-Klibanov method as a new approximation technique for an age-dependent population PDE of Gompertz type in modeling the evolution of tumor density in a brain tissue. Through suitable nonlinear and linear transformations, the Gompertz model of interest is transformed into an auxiliary third-order nonlinear PDE. Then, a coupled transport-like PDE system is obtained via an application of the Fourier-Klibanov method, and, thereby, is approximated by the explicit finite difference operators of characteristics. The stability of the resulting difference scheme is analyzed under the standard 2-norm topology. Finally, we present some computational results to demonstrate the effectiveness of the proposed method.Comment: 19 pages, 56 figures, 1 tabl

Wait times in hip and knee replacement: single-entry model and prioritization

The single-entry model (SEM) in healthcare consolidates waiting lists through a single point-of-entry and patients can see the next available surgeon from a pooled available provider based on the patient’s urgent levels. Prioritization is used to ensure that patients with higher urgent levels may access care quickly. The SEM for hip and knee replacement surgery in the Eastern Health region of Newfoundland and Labrador showed a reduction in wait times for consultation by priority levels. Little is known about the improvement in wait times for surgery and the chance of receiving consultation and surgery within the national benchmarks by priority levels. This study aimed to examine the SEM’s role in timely access to orthopedic services and evaluate an association between factors and receiving consultation and surgery within the national benchmarks through the SEM. Survival analysis was conducted to estimate wait times, examine factors impacting wait times for hip and knee replacement. The data used were adult patients referred to the Orthopedic Central Intake clinic in the Eastern Health region for a total hip or knee arthroplasty assessment between 2011-2019. Logistic regression analysis was used to explore the association between these factors and the receiving consultation and surgery within benchmarks. The study revealed that hip or knee replacement patients with high urgent had more likely to see an orthopedic surgeon for consultation than those with low urgent. Hip or knee replacement patients with priority 1 were more likely to have a consultation within 90 days than their counterparts. Priority levels were not significantly related to the likelihood of having surgery since the decision to surgery was made for both hip and knee. The likelihood of receiving a knee replacement surgery within 182 days was nonsignificant among patients with priority 1, priority 2, and priority 3, while hip replacement patients with priority 3 were more likely to have surgery within 182 days than those with a high priority level. Choosing the next available surgeon shortened wait times for consultation and improved the likelihood of receiving consultation within 90 days. However, this choice was less likely to have surgery within 182 days than choosing a specific surgeon. Incomplete initial referral forms prolonged wait times for consultation but insignificantly impacted the probability of having consultation within 90 days. Patients with knee osteoarthritis were less likely to have consultations within 90 days than patients with other arthritis disorders. This study explored the timely improvement of access to consultation for hip and knee replacement by priority levels and factors impacting wait times through the SEM. An association between wait time for surgery and priority levels was not found in this study, whereas hip replacement patients with low priority were more likely to receive surgery within the benchmark of 182 days than those with high priority. Further studies are needed to investigate this