Recherchers economiques manageriales
Volume 14, Numéro 5, Pages 513-532
2020-12-31

The Role Of Ownership Structure In Explaining Differences In Efficiency: Evidence From The Algerian Banking Sector

Authors : Hamdani Fouad . Lounici Nora .

Abstract

The aim of the present study is to compare the performance of foreign and public banks as measured by cost and profit efficiency. To accomplish this, we use data on all the commercial banks operating in Algeria over the period 2003–2016. The stochastic frontier approach (SFA) is used to obtain the efficiency scores, which are then regressed on different bank characteristics. Interestingly, results show that public banks are more cost efficient than foreign banks, however they are less profit efficient.

Keywords

Ownership structure ; cost and profit efficiency ; stochastic frontier analysis ; commercial banks ; Algeria