Performance of Indian commercial banks (1995-2002): an application of data envelopment analysis and Malmquist productivity index

This paper investigates efficiency using data envelopment analysis (DEA) and productivity growth using Malmquist index in a sample of Indian commercial banks over the period 1995-2002. Using total deposits and operating expenses as input and loans and other earning assets as output in the DEA analysis we observe no significant growth in productivity during the sampled period. The rate of increase in technical efficiency though small is likely to be due to scale efficiency compared to managerial efficiency. In general, smaller banks are less efficient and highly DEA-efficient banks have a high equity to assets and high return to average equity ratios. There has been no growth in productivity in private sector banks where as the public sector banks appears to demonstrate a modest positive change through 1995-2002. Technological change in the public sector banks reveals a growth while the private sector banks experienced a negative growth of almost the same magnitude.Indian banks, productivity change, DEA, Malmquist index

The Predictive Power of Financial Variables: New Evidence from Australia

Many studies have attempted to examine the predictive power of financial variables for numerous countries, but rarely does such research focus on future economic activities with respect to Australia. Financial variables are used to predict future economic events primarily because these variables are the closest indicators of the expectations and activities of investors and other economic agents. The recent global financial crisis (GFC) stemming from the subprime crisis shows that financial markets significantly influence global macroeconomic activities. In this study, we use major financial variables, such as the 90-day Treasury bill rate, 10-year Treasury bond rate, interest rate spread, and Australian stock index data. Similar to the housing prices in some other countries, those in Australia play a key role in future economic activities. In addition to financial variables, housing stock data is incorporated into our model for more realistic results, which are obtained by probit maximum likelihood estimation. We also use a general model for forecasting Australia’s GDP growth until the third quarter of 2012. The results support previous research findings, indicating that financial variables are a useful tool for forecasting future economic activities in Australia

Military Expenditure and Economic Growth: The Case of Sri Lanka

Studies concerning military expenditure have increased rapidly in recent years. The results of these studies concerning the impact of military expenditure on economic growth have been contradictory. The argument as to whether military expenditure accelerates or hampers the economic growth of a country continues. The objective of the present study is to examine the impact of military expenditure on the economic growth of Sri Lanka. As Sri Lanka is facing a growing problem of increased military expenditure due to ongoing communal troubles, it makes an appropriate case to examine. Conventional methods have been used in this study to analyse the relationship between military expenditure and economic growth in Sri Lanka. The results of the study show a negative impact of military expenditure on the economic growth of the country

Female directors and acquisitions: Australian evidence

This study investigates the influence of female directors on the acquisition decisions of Australian companies. We use a dual approach, conducting empirical analyses while exploring the views of industry experts with extensive acquisition experience. We find that the market perceives acquisitions conducted by acquirers with female board members to be valuecreating decisions. Industry experts believe that female directors apply a broader perspective in evaluating acquisitions without falling into the ‘deal frenzy’ trap, a common occurrence in male directors. Several female directorship traits, combined with enhanced efficiency, contribute to tangible benefits offered by female directors in acquisitions

Unchecked manipulations, price–volume relationship and market efficiency: evidence from emerging markets

This paper investigates how unchecked manipulations could cause frequent trade-induced manipulations and weak-form market inefficiency in South Asian stock markets [Bombay Stock Exchange (BSE), Dhaka Stock Exchange (DSE) and Karachi Stock Exchange (KSE)]. Specifically, the paper analyses the price–volume relationship as one of the many cases of market inefficiency. By employing various econometric tests, this paper first provides conclusive evidence of market inefficiency in these markets. It then extracts evidence of manipulation periods from legal cases and analyses price–volume relationship during these periods. The paper finds that there exists market-wide trading-induced manipulations, where excessive buying and selling causes prices to inflate artificially before crashing down. The paper concludes that South-Asian markets are inefficient in the weak-form