Productivity Growth Amongst Malaysian Finance Companies, 1988-1996
Productivity measures are indicators of success, by which the performance of any individual finance company as well as the industry can be gauged. There have been rapid changes in financial industry structure occurring around the world since 19701s. In Asia, countries are restructuring banking re...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2001
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8152/1/GSM_2001_7_.pdf |
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| Summary: | Productivity measures are indicators of success, by which the performance of any
individual finance company as well as the industry can be gauged. There have been
rapid changes in financial industry structure occurring around the world since 19701s.
In Asia, countries are restructuring banking regulations and encouraging financial
liberalization, in an attempt to increase financial industry efficiency. The financial
industry has also undergone multiple growth in new products and facilities in recent
years as a result of advances in technology and telecommunications. These
developments would have an impact on the competitiveness and hence on the
performances of any financial institutions, particularly the Malaysian finance
companies. The aim of this study is to investigate the productivity growth amongst the finance
companies in Malaysia from 1988 to 1996. In this context, the study attempts to
evaluate the technical efficiency, efficiency change, technical change and
productivity of finance companies using the Malmquist index approach and Data
Envelopment Analysis. The study of this kind is particularly important to the
producers, depositors or customers, investors as well as legislators.
The results indicate that during the period of this study, there is an improvement in
productivity of Malaysian finance companies. The productivity growth is mainly
associated with the technical change effect rather then technical efficiency change. It
also appears that the trend rate of productivity growth accelerated significantly after
1991, following the earlier recession. The results support the Central Bank's call for
the financial consolidation of the finance companies. |
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