The effects of governance changes on bank efficiency in China: A stochastic distance function approach

China has accelerated and deepened bank reform since it joined the WTO in 2001. Employing a stochastic distance function, this paper investigates the technical efficiency of banks and examines the static, selection and dynamic effects of governance changes on bank efficiency in China for the period 1995-2005. Our results show that bank efficiency has been improved and state-owned banks still perform poorly except for a noticeable improvement from 2003. Strong selection effects are found from both the foreign acquisition and going-public reform strategies. Foreign acquisition may benefit bank efficiency in the long run, but going-public appears to have just some short run effects. One obvious policy implication is that foreign competition is beneficial to China 's on-going bank reform, and going-public is just a means to allow effective foreign competition.Distance function, Efficiency, Banking, China

Banking Reform and Efficiency in China: 1995-2008

Employing the one-step stochastic frontier analysis (SFA) approach, this paper examines bank efficiency in China, paying special attention to the ownership, selection effect and dynamic effects of governance changes on bank performance. Bank efficiency has improved over the data period 1995-2008. The estimated average cost and profit efficiencies are 74% and 63% respectively. Joint Stock Commercial Banks (JSCBs) and City Commercial Banks (CCBs) outperform State-owned Commercial Banks (SOCBs). The results suggest a strong selection effect for foreign investors. Foreign ownership participation has a negative effect on profit efficiency in the long-term while initial public offerings (IPOs) improve bank profitability in the short-term. The research findings have important implications on future bank reforms in China in the aftermath of the current financial crisis.SFA, Efficiency, Banking, China

Proof of the deadlock-freeness of ALD routing algorithm

This is the appendix to the paper Load-Balanced Adaptive Routing for Torus Networks to provide a detailed, formal proof of the deadlock-freeness of the routing algorithm proposed in the paper. The paper is submitted to Electronics Letters, and the abstract of which is as follows: A new routing algorithm for torus interconnection networks to achieve high throughput on various traffic patterns, Adaptive Load-balanced routing with cycle Detection (ALD), is presented. Instead of the -channels scheme adopted in a few recently proposed algorithms of the same category, a cycle detection scheme is employed in ALD to handle deadlock, which leads to higher routing adaptability. Simulation results demonstrate that ALD achieves higher throughput than the recently proposed algorithms on both benign and adversarial traffic patterns