Comparative analysis of banking production frameworks in eastern european financial markets

This paper performs comparative analysis of the non-radial Russell output technical efficiency measures of 13 Eastern European banking systems assuming a banking production with risk as an undesirable output and where output components can be negative. This is analysed utilizing three modelling specifications; the intermediation, production and profit methodologies. Along with distribution and inter-distribution mobility analysis of the efficiency scores across alternative methodologies, we also estimate and statistically compare the distributions of estimated efficiency scores using the bootstrap-based Simar–Zelenyuk-adapted-Li test. The results suggest that although the efficiency levels differ across the approaches, change in positions of the banks relative to the mean is not substantial across the three methodologies.     

Linking customer satisfaction, employee appraisal, and business performance: an evaluation methodology in the banking sector

The linkage among customer satisfaction, employee evaluation, and business performance data is very important in modern business organizations. Several previous research efforts have studied this linkage, focusing mainly on the financial or business performance in order to analyze the efficiency of an organization. However, recent studies have tried to consider other important performance indicators, which are able to affect business operations and future growth (e.g., external and internal customer satisfaction). In the case of the banking industry, studying the relations among the aforementioned variables is able to give insight in the performance evaluation of bank branches and the viability analysis of the banking organization. This paper presents a real-world study for measuring the relative efficiency of a set of bank branches using a Data Envelopment Analysis (DEA) approach. In particular, a multistage DEA network model is proposed, using a set of performance indicators that combine customer satisfaction, employee evaluation, and business performance indices. The main aim of the presented study is to evaluate the relative efficiency of each customer service delivery step, in the environment of a bank branch. The results are also able to estimate the contribution of the assessed performance indicators to the branch’s overall efficiency, and to determine potential improvement actions.     

Detecting fuzzy relationships in regression models: The case of insurer solvency surveillance in Germany

We develop a test for the fuzziness of regression coefficients based on the Tanaka et al. (1982) and He et al. (2007) possibilistic fuzzy regression models. We interpret the spread of the regression coefficients as a statistic measuring the fuzziness of the relationship between the corresponding independent variable and the dependent variable. We derive test distributions based on the null hypothesis that such spreads could have been obtained by estimating a possibilistic regression with data generated by a classical regression model with random errors. As an example, we show how our test detects a fuzzy regression coefficient in a solvency prediction model for German property-liability insurance companies.     

Dynamic effects in inefficiency: Evidence from the Colombian banking sector

Firms face a continuous process of technological and environmental changes that requires them to make managerial decisions in a dynamic context. However, costs and constraints prevent firms from making instant adjustments towards optimal conditions and may cause inefficiency to persist in time. We propose a dynamic inefficiency specification that captures differences in the adjustment costs among firms and non-persistent effects of inefficiency heterogeneity. The model is fitted to a ten year sample of Colombian banks. The new specification improves model fit and have effects on efficiency estimations. Overall, Colombian banks present high inefficiency persistence but important differences between institutions are found. In particular, merged banks present low adjustment costs that allow them to recover rapidly efficiency losses derived from merging processes.     

Mean curvature of extrinsic spheres in submanifolds of real space forms

Given a submanifold P^m with the Hilbert-Schmidt norm of its second fundamental form bounded from above, in a real space form of constant curvature we have obtained a lower bound for the norm of the mean curvature normal vector field of extrinsic spheres with sufficiently small radius in P^m in terms of the mean curvature of the geodesic spheres in with same radius, and the mean curvature of P^m.Received: 4 April 2003     

Fuzzy multicriteria decision support for budget allocation in the transport sector

Summary This paper compares two ways of providing decision support for the allocation of a fixed financial budget among a set of competing highway investment proposals. The first, which is described only in outline, uses a broadly conventional, hierarchically structured linear additive multicriteria model. The technical focus of the paper, however, is on the second, and approach based in fuzzy multicriteria modelling. The thinking which led us to explore this approach is set out, together with the formal structure of the model. The results of a small case study are given and an assessment is made of how decision makers' understanding of the investment options available can be enhanced by using the two models in tandem.     

On the 2-rainbow domination in graphs

The concept of 2-rainbow domination of a graph G coincides with the ordinary domination of the prism G□K₂. In this paper, we show that the problem of deciding if a graph has a 2-rainbow dominating function of a given weight is NP-complete even when restricted to bipartite graphs or chordal graphs. Exact values of 2-rainbow domination numbers of several classes of graphs are found, and it is shown that for the generalized Petersen graphs GP(n,k) this number is between ⌈4n/5⌉ and n with both bounds being sharp.     

Specification and estimation of multiple output technologies: A primal approach

This paper addresses specification and estimation of multiple-outputs and multiple-inputs production technology in the presence of technical inefficiency. The primary focus is on the primal formulations. Several competing specifications such as production function, input (output) distance function, input requirement function are considered. We show that all these specifications come from the same transformation function and are algebraically identical. We also show that: (i) unless the transformation function is separable (i.e., outputs are separable from inputs), the input (output) ratios in the input (output) distance function can not be treated as exogenous (uncorrelated with technical inefficiency) resulting inconsistent estimates of the input (output) distance function parameters. (ii) Even if input (output) ratios are exogenous, estimation of the input (output) distance function will result in inconsistent parameter estimates if outputs (inputs) are endogenous. We address endogeneity and instrumental variable issues in details in the context of flexible (translog) functional forms. Estimation of several specifications using both single and system approaches are discussed using Norwegian dairy farming data.     

Some geometric properties of the Bakry-Émery-Ricci tensor

The Bakry-Émery tensor gives an analog of the Ricci tensor for a Riemannian manifold with a smooth measure. We show that some of the topological consequences of having a positive or nonnegative Ricci tensor are also valid for the Bakry-Émery tensor. We show that the Bakry-Émery tensor is nondecreasing under a Riemannian submersion whose fiber transport preserves measures up to constants. We give some relations between the Bakry-Émery tensor and measured Gromov-Hausdorff limits.     

Aleksandrov reflection and nonlinear evolution equations,I: The n-sphere and n-ball

We consider the (degenerate) parabolic equationu _t =G(u + ug, t) on then-sphereS ⁿ . This corresponds to the evolution of a hypersurface in Euclidean space by a general function of the principal curvatures, whereu is the support function. Using a version of the Aleksandrov reflection method, we prove the uniform gradient estimate ¦u(·,t)¦ <C, whereC depends on the initial conditionu(·, 0) but not ont, nor on the nonlinear functionG. We also prove analogous results for the equationu _t =G(u +cu, ¦x¦,t) on then-ballB ⁿ , wherec ₂(B ⁿ ).     

The Webster scalar curvature problem on the three dimensional CR manifolds

In this paper, we prove some existence results for the Webster scalar curvature problem on the three dimensional CR compact manifolds locally conformally CR equivalent to the unit sphere S³ of C². Our methods are based on the techniques related to the theory of critical points at infinity.     

Cyclicity of a simple focus via the vanishing multiplicity of inverse integrating factors

First we provide new properties about the vanishing multiplicity of the inverse integrating factor of a planar analytic differential system at a focus. After we use this vanishing multiplicity for studying the cyclicity of foci with pure imaginary eigenvalues and with homogeneous nonlinearities of arbitrary degree having either its radial or angular speed independent of the angle variable in polar coordinates. After we study the cyclicity of a class of nilpotent foci in their analytic normal form.     

A new multicriteria approach for the analysis of efficiency in the Spanish olive oil sector by modelling decision maker preferences

The efficiency in production is often analysed as technical efficiency using the production frontier function. Efficiency scores are usually based on distance computations to the frontier in an m + s-dimensional space, where m inputs produce s outputs. In addition, efficiency improvements consider the total consumption of each input. However, in many cases, the “consumption” of each input can be divided into input-consumption sections (ICSs), and trade-off among the ICSs is possible. This share framework can be used for computing efficiency. This analysis provides information about both the total optimal consumption of each input, as does data envelopment analysis, and the most efficient allocation of the “consumption” among the ICSs. This paper studies technical efficiency using this approach and applies it to the olive oil sector in Andalusia (Spain). A non-parametrical methodology is presented, and an input-oriented Multi-Criteria Linear Programming model (MLP) is proposed. The analysis is developed at global, input and ICSs levels, defining the extent of satisfaction achieved at all these levels for each company, in accordance with their own preferences. The companies’ preferences are modelled with their utility function and their set of weights. MLP offers more detailed information to assist decision makers than other models previously proposed in the literature. In addition to this application, it is concluded that there is room for improvement in the olive oil sector, particularly in the management of the skilled labour. Additionally, the solutions with two opposite scenarios indicate that the model is suitable for the intended decision making process.     

Continua of H-graphs: convexity and isoperimetric stability

In this paper we consider nonparametric solutions of the volume constrained Plateau problem with respect to a convex planar curve. Existence and regularity is obtained from standard elliptic theory, and convexity results for small volumes are obtained as an immediate consequence. Finally, the regularity is applied to show a strong stability condition (Theorem 8) for all volumes considered. This condition, in turn, allows us to adapt an argument of Cabré and Chanillo [CC97] which yields that any solution enclosing a non-zero volume has a unique nondegenerate critical point. Received March 25, 1998 / Accepted December 1, 1998     

On the construction of mutual fund portfolios: A multicriteria methodology and an application to the Greek market of equity mutual funds

The evaluation of the performance of mutual funds (MFs) has been a very interesting research topic not only for researchers, but also for managers of financial, banking and investment institutions. In this paper, an integrated methodological framework for the evaluation of MF performance is proposed. The proposed methodology is based on the combination of discrete and continuous multicriteria decision aid (MCDA) methods for MFs selection and composition. In the first stage of the analysis the UTADIS MCDA method is employed in order to develop mutual fund's performance models supporting the selection of a small set of MFs, which will compose the final portfolios. In the second stage, a goal programming model is employed to determine the proportion of the selected MFs in the final portfolios. The methodology is applied on data of Greek MFs over the period 1999–2001 with encouraging results.     

Multicriteria classification models for the identification of targets and acquirers in the Asian banking sector

The purpose of the present study is the development of classification models for the identification of acquirers and targets in the Asian banking sector. We use a sample of 52 targets and 47 acquirers that were involved in acquisitions in 9 Asian banking markets during 1998–2004 and match them by country and time with an equal number of non-involved banks. The models are developed and validated through a tenfold cross-validation approach using two multicriteria decision aid techniques. For comparison purposes we also develop models through discriminant analysis. The results indicate that the multicriteria decision aid models are more efficient that the ones developed through discriminant analysis. Furthermore, in all the cases the models are more efficient in distinguishing between acquirers and non-involved banks than between targets and non-involved banks. Finally, the models with a binary outcome achieve higher accuracies than the ones which simultaneously distinguish between acquirers, targets and non-involved banks.     

Stochastic differential equations on noncompact manifolds: moment stability and its topological consequences

Summary In this paper we discuss the stability of stochastic differential equations and the interplay between the moment stability of a SDE and the topology of the underlying manifold. Sufficient and necessary conditions are given for the moment stability of a SDE in terms of the coefficients. Finally we prove a vanishing result for the fundamental group of a complete Riemannian manifold in terms of purely geometrical quantities.Research supported by SERC grant GR/H67263     

On the existence of nontrivial extremal metrics on complete noncompact surfaces

In this paper, we consider the 2-dimensional local Calabi flow on a complete noncompact surface . Then, based on the Harnack-type estimate, we show the long-time existence and asymptotic convergence of a subsequence of solutions of such a flow on with and bounded from above by a negative constant on a ball. For its applications, this will lead to the existence of extremal metrics on a complete noncompact surface of finite topological type. In particular, there exists an extremal metric of nonconstant Gaussian curvature on or Received: 21 June 2001 / 18 January 2002 / Published online: 27 June 2002 Research supported in part by NSC and NCTS.