A note on the market share-profitability relationship

This study extends earlier empirical work to determine whether there is a breakpoint or critical level in the frequently observed relationship between firm market share and profit rate. The analysis focuses on the banking industry and uses a sample of 10,690 firms located in 2165 different local geographic markets. Though the results apply directly only to banking, the similarity of findings on various other industrial organization topics in banking and the industrial sector suggests that the results of this study will be broadly relevant to the industrial sector.The main findings of the study are that (1) in general, firm market share is directly related to profitability; (2) the firm market share variable remains positive and significant when controlling for market concentration either with concentration as a separate independent variable or by conducting tests with subsamples of firms that are in markets with similar concentration ratios; and (3) while there is no sharp breakpoint in the market share-profitability relationship, the results indicate that profit rates of firms increase at a decreasing rate up to a share of about 55 percent. Since numerous studies have found that economies of scale are not particularly important in banking, it appears that the observed relationship is not due to greater efficiency with larger shares.     

The effect of merger and acquisition activity on the safety and soundness of a banking system

The purpose of this paper is twofold. First, it argues that merger and acquisition activity reduces the total risk in the banking system. Second, it suggests that the recent high level of merger and acquisition activity as well as the high rate of banks failure is an adjustment process of a banking system to a smaller optimal size.     

Market share inequality,the HHI,and other measures of the firm-composition of a market

Data for individual markets suggest that the Herfindahl- Hirschman Index does not fully account for the inequality of market shares and the number of firms in a market. An empirical investigation is conducted to determine whether share inequality, number of firms, and major firm presence affect market profit rates independent of the HHI. The analysis controls for efficiency, among other things. Test results based on 1,684 banking markets during 1990–1992 indicate that the HHI, market share inequality, and the importance of major firms are positively related and the number of firms is negatively related to profit rates. Results on several other variables also suggest that market imperfections exist in local banking markets.     

Market power and banking failures

We investigate whether more competition in the banking industry necessarily results in a higher probability of banking failures, as it is often suggested. In our model borrowers face a moral hazard problem, which induces banks to choose between costly monitoring and credit rationing. We show that investment decreases with the lending rate and increases with monitoring effort. Since incentives to monitor are enhanced by market power, the relationship between market structure and investment is ambiguous. In the presence of non-diversifiable risk and decreasing returns to scale, more investment implies higher failure rates. As a result, the relationship between market power and banking failures is ambiguous.     

Profits and "contestability" in highly concentrated banking markets

It has been suggested that monopolistically structured banking markets will perform competitively because banks have so many potential competitors and these markets are contestable. This hypothesis is tested on 2,861 banks in 1,286 markets. The tests compare rates of return of banks in markets with one, two, three and four banks with similar sized banks in metropolitan markets. The findings clearly reveal that rates of return in markets with few banks are significantly higher than those in markets with many competitors. These results question the validity of the theory of contestable markets in banking.     

Determinants of Entry and Profits in Local Banking Markets

This paper estimates a two equation model of market entry and profits, utilizing data on entry into over 2,000 banking markets over the period 1977--88. The entry equations measure whether entry depends on incumbent firms' profits and other market attributes that reflect the long-term attractiveness of markets for entry. Market profits, assumed to follow a partial-adjustment process, are affected by entry directly and indirectly through market structure. The model also corrects for an unavoidable source of error in market-level profits for the banking industry. The estimates suggest that a competitive process is at work in banking markets that limits the ability of supra-normal profits to persist. Entry is more likely in markets that have high profits, consistent with previous empirical results that market structure adjusts more quickly when profits are supra-normal. Population and population growth are also strong determinants of entry. Entry, in turn, reduces profits in rural markets.     

关于构建我国银行危机预警指标体系的思考

银行危机预警指标体系是我国银行危机预警体系中的重要组成部分。结合国内外的一些研究成果,认为银行危机预警属于宏观与微观相结合的研究范畴,所以在构建预警指标体系时综合考虑外部环境对银行业的影响和冲击以及银行业自身运营状况两个方面,选取8个宏观经济指标和5个大类、13个分类银行体系自身指标构建起我国银行危机预警指标体系。     

Performance implications of outsourcing for technological innovations: managing the efficiency and adaptability trade‐off

We explore how increasing efficiency compromises adaptability when a firm outsources during the emergent stages of a technological innovation. Since efficiency ‐related problems differ in complexity and structure from those associated with adaptability, their optimal governance differs. While the former benefits from outsourcing, the latter is better off managed within organizational boundaries. In addition, a firm's ability to engage in complex problem solving buffers the efficiency‐adaptability trade‐off that occurs with increasing levels of outsourcing. In this study, we find support for our theses. Although outsourcing yields efficiency gains up to a certain point, it hurts adaptability. However, a firm's absorptive capacity mitigates this trade‐off. Our data on outsourcing for Internet banking is both archival and based on two surveys conducted with 100 U.S. banks. Copyright © 2011 John Wiley & Sons, Ltd.     

The impact of development of customer online banking skills on customer adviser skills

The object of this article is the development of customer banking skills as a result of using online banking and its impact on the competence of customer advisers in face‐to‐face customer contacts. The main results show that online banking enables customers to develop a range of banking skills.     

Competition and stability in modern banking: A post-crisis perspective

Competition has been suppressed for extended periods in banking and when it has been unleashed, financial stability has suffered. This paper elucidates the relationship between competition and stability in modern banking, with particular attention to the impact of digital technologies, and derives the policy consequences for regulation and competition policy.     

The Influence of Credit Union and Savings and Loan Competition on Bank Deposit Rates in Idaho and Montana

This study examines the effect of S & L and credit union competition on bank behaviorin Idaho and Montana. A structure-performance OLSmodel is used to estimate bank interest rates oncertain deposits. Two key independent variables arelocal market share of credit unions and S & Ldeposits. Overall, previous studies found littleevidence that thrift competition affects bankperformance. We found some evidence that thriftcompetition, especially from credit unions, resultsin higher interest rates for bank CDs. Theseresults have policy implications as banking groupscurrently seek to restrict credit union competition.     

我国商业银行市场结构现状分析及其优化研究

本文基于我国13家商业银行2000-2006年的面板数据。对我国商业银行业市场结构、绩效等情况进行实证分析。得出我国商业银行业市场集中度趋于下降.我国银行的垄断状态逐渐被打破。在商业银行市场结构与银行绩效的回归结果上表现为:伴随着市场集中度下降,各商业银行绩效得到提高;商业银行资产规模对其绩效带来负的影响;银行管理水平、创利能力对其绩效产生显著的正向影响;产品差异化与银行绩效则显示弱的正向关系。本文认为完善银行业微观基础、降低政策性市场壁垒、提高银行差异化产品的服务能力、拓展银行国际业务等是我国银行市场结构优化的方向。     

货币供给量与影子银行、通货膨胀的关系——基于可变参数状态空间模型的实证检验

为了提高货币政策的可操作性,为货币政策的制定提供更加明确的方向,运用平稳性检验、协整关系检验、Granger因果关系检验等方法,基于可变参数的状态空间模型,研究货币供给量与影子银行、通货膨胀之间的动态变化关系,确定弹性系数的大小。研究发现,货币供应量的通货膨胀弹性系数呈现出明显的下降趋势,通货膨胀的影响逐渐降低;货币供应量的影子银行弹性系数呈上升趋势,影子银行的影响力越来越大。对三者关系进行研究所获得的结论有利于加强对影子银行的监管,提高货币政策实施的有效性。     

Search Cost and Price Dispersion in Vertically Related Markets: The Case of Bank Loans and Deposits

Using data on marginal interest rates of loan and deposit products by Spanish banks, we find that the level of interest rates on loans (deposits) across geographic markets decrease (increase) with the number of banks in each market, and that the level of interest rates on loans increases with the level of interest rates of deposits. We also find that the dispersion of interest rates of both loans and deposits increase with the number of banks. This evidence is interpreted as evidence of customer’s search costs in retail banking, consistent with predictions from the Carlson and McAfee (J Polit Econ 91:480–493, 1983) model of market competition with search costs.     

Potential competition and the factors influencing banking concentration

Multiple regression analysis is used to study the factors influencing market concentration in urban banking markets. The results indicate that independentde novo entry and shifts in population from the central city to the suburbs can be important deconcentrating factors in urban banking markets. In terms of the potential competition doctrine, the results suggest that attractive banking markets are likely to attract enough actual and potential entrants to mitigate any problems associated with a leading bank acquisition by a potential entrant. On the other hand, potential competition is more likely to be an issue in less attractive banking markets where the probability of entry is low.     

Banking Relationships and REIT Capital Structure

This article examines the evolution of real estate investment trust (REIT) capital structure in the new REIT era with a focus on the effects of banking relationships on REIT capital structure. Using a unique sample of REITs from 1992 to 2003, we find that, after controlling for firm characteristics, REITs with banking relationships are more likely to obtain long‐term debt ratings and subsequently issue public debt. Moreover, REITs with banking relationships tend to use less secured debt and have lower leverage. These findings support the notion that banking relationships facilitate REITs' access to the public debt markets and help explain why REITs shift from traditional mortgage financing to bank debt and public capital market financing. The results also support the proposition that firm leverage should be positively related to the amount of a firm's secured debt.     

土地储备视角下城市房屋拆迁管理研究

通过研究在土地储备制度下当前城市房屋拆迁管理存在的矛盾,采用规范研究和对比研究的方法,对土地储备制度下城市房屋拆迁主体、拆迁的公共利益性质、拆迁程序中存在的问题进行了详细分析。提出了在坚持土地储备制度的同时,应明确城市房屋拆迁的公共利益属性,在法律上确定土地储备机构为拆迁人;在城市规划阶段应进行公示听证,并取消拆迁管理部门裁决的权力,取消行政强制拆迁等建议。     

Does Local Competition Impact Interest Rates Charged on Small Business Loans? Empirical Evidence from Canada

Using a unique survey database of Canadian small business loans,we find a negative and statistically significant relation between the number of localcompetitors and small business loan rates. This result is robust to the presence of a wide varietyof covariates intended to proxy the effects of both loan specific details and individualcharacteristics. These findings further suggest that the local markets definition applied to small businessloans is still relevant, despite recent technological innovation such as internet banking.     

New technologies in banking — revolutionary change?

Bankers are being told that new information technologies in banking will mean the end of the traditional high street bank. This article looks behind the myths to the reality of the so called banking revolution. The authors explain the machines involved, and examine their impact and actual use. They conclude that the most important impacts of information technology may be on bank staffs and their career prospects, as specialization replaces traditional generalist banking skills.     

CEO财务经历与非金融企业影子银行化

本文基于管理者异质性视角,以2013~2020年中国A股上市公司为研究样本,实证分析了CEO财务经历对非金融企业影子银行化的影响。研究发现:CEO财务经历可以抑制非金融企业的影子银行化,在采用倾向匹配得分法(PSM)等多种稳健性检验以后,上述结果依然稳健。进一步研究发现,CEO财务经历对非金融企业影子银行化的抑制作用在CEO权利较大的企业中和CEO权利较小的企业中均显著;在非国有企业中这种负相关关系依然显著,但在国有企业中不显著。