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dc.contributor.authorWerner, Karlen_US
dc.contributor.authorMoormann, Jürgenen_US
dc.date.accessioned2009-03-18en_US
dc.date.accessioned2009-09-10T14:00:38Z-
dc.date.available2009-09-10T14:00:38Z-
dc.date.issued2009en_US
dc.identifier.piurn:nbn:de:101:1-200907213372-
dc.identifier.urihttp://hdl.handle.net/10419/27878-
dc.description.abstractMost previous research on efficiency in banking takes a regulatory perspective. In contrast, this paper investigates the empirical relation between efficiency and profitability in five large economies of the European Union during the period 1998-2005 and discusses the results from the perspective of corporate bank strategy. Methodologically the existing literature is expanded by the use of DEA super-efficiency values to regress profitability, the incorporation of risk by calculative costs of capital, and a model specification built on the modern understanding of banks as centers of value creation. The results of the conducted static and dynamic regression analyses show that profitable banks operate with higher technical efficiency than their competitors. Furthermore, the strategic environment and in this regard the structure and concentration of the national financial sector have a considerable impact on a bank's financial performance. Both issues proved to be statistically and economically significant. Thus, the results support the appropriateness of the generic strategy of cost leadership for the European banking market. Banks following this strategic position were able to achieve higher excess returns during the analyzed period.en_US
dc.language.isoengen_US
dc.publisherFrankfurt School of Finance & Management Frankfurt a. M.de
dc.relation.ispartofseriesWorking paper series // Frankfurt School of Finance & Management 111de
dc.subject.jelC14en_US
dc.subject.jelG21en_US
dc.subject.jelL25en_US
dc.subject.jelM21en_US
dc.subject.ddc330en_US
dc.subject.keywordBanksen_US
dc.subject.keywordcorporate strategyen_US
dc.subject.keywordefficiencyen_US
dc.subject.keywordoperational efficiencyen_US
dc.subject.keywordprofitabilityen_US
dc.subject.stwBankde
dc.subject.stwTechnische Effizienzde
dc.subject.stwRentabilitätde
dc.subject.stwBankmanagementde
dc.subject.stwDeutschlandde
dc.subject.stwSpaniende
dc.subject.stwFrankreichde
dc.subject.stwGroßbritanniende
dc.subject.stwItaliende
dc.titleEfficiency and profitability of European banks: how important is operational efficiency?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn593966384en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:fsfmwp:111-
Appears in Collections:Frankfurt School - Working Paper Series, Frankfurt School of Finance and Management

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