1. An Evaluation of the Productive Efficiency of Savings and Loans.
- Author
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Fok, Robert C.W., Sung Ko Li, and Finch, J. Howard
- Subjects
THRIFT institutions ,LINEAR programming - Abstract
A nonparametric linear programming approach is adopted to measure the productive efficiency of thrift financial institutions. The methodology is applied to a sample of California thrifts in 1989, yielding high mean efficiency scores. High efficiency scores correspond to high levels of operating efficiency. Estimation of a truncated regression model indicates that the major determinants of thrift efficiency are organization form, management style, risk, and firm size. Applying the methodology to a subset of thrifts from 1986 which had failed by 1989 shows technical inefficiency to be a significant indicator of a high probability of failure. [ABSTRACT FROM AUTHOR]
- Published
- 1995
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