Managers and efficiency in banking

نویسندگان

  • Karlo Kauko
  • Ari Hyytinen
  • Jozsef Molnar
  • Juha Kilponen
چکیده

This paper presents evidence on the impact of managers on cost efficiency in banking. Stochastic frontier analysis is applied to a unique Finnish data set. The paper finds that manager age and education have strong yet complicated effects. University education enhances efficiency if the manager is running a large bank. Managing director changes are systematically followed by efficiency changes. Manager retirement typically causes an efficiency improvement, whereas other manager changes can either improve or weaken efficiency.

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تاریخ انتشار 2005