ABSTRACT This study uses a sample of foreign and domestic banks operating in Greece during 1999–2004 to examine the impact of ownership on efficiency. We estimate an input oriented data envelopment analysis (DEA) model under variable returns to scale with inputs and outputs selected on the basis of a profit-oriented approach. The results indicate an average pure technical efficiency equal to 0.7325 showing that the banks in sample could improve their efficiency by 26.75%. Over the same period, scale efficiency was equal to 0.6830. The comparison of the efficiency scores by group of ownership shows that domestic banks have higher pure technical efficiency and lower scale efficiency; however, the differences are not statistically significant. A DEA本论文由英语论文网www.51lunwen.org整理提供 window-analysis confirms the results of the cross-section estimations. We also estimate a Tobit regression model but consistent with the univariate results we find no evidence to support the argument that ownership has a statistically significant impact on efficiency.

1. Introduction
Over the last years, several banking sectors in both developed and developing coun- tries witnessed an increase in foreign banks’ entry. This trend generated a debate in the literature as to the potential benefits and costs of foreign banks’ entry for the domestic market (Levine, 1996;代写term paper Stiglitz, 1993; Peek and Rosengren, 2000). It also resulted in a number of empirical studies that examined the performance of foreign................
2. Background Discussion
2.1 Theoretical Discussion
2.2 Empirical Evidence
3. Methodology and Sample
3.1 Data Envelopment Analysis (DEA)
3.2 Sample
4. Empirical Results www.wlunwen.com
4.1 Base Results
4.2 Robustness Tests
ne
5. Conclusions
Notes
References

References
Abdul Majid, Muhamed, Zulkhibri and Sufian, Fadzlan (2008) Bank efficiency and share prices in
China: Empirical evidence from a three-stage banking model, MPRA Paper No. 12120. Available at:
http://mpra.ub.uni-muenchen.de/12120
Asmild, Mette, Paradi, Joseph C., Aggarwall, Vanita and Schaffnit, Claire (2004) Combining DEA
window analysis in the Malmquist index approach in a study of the Canadian banking industry,
Journal of Productivity Analysis, 21, pp. 67–89.
Ataullah, Ali, Cockerill, Tony and Le, Hang (2004) Financial liberalization and bank efficiency: a
comparative analysis of India and Pakistan, Applied Economics, 36, pp. 1915–1924.
Avkiran, Necmi K. (2004) Decomposing technical efficiency and window analysis, Studies in Economics
and Finance, 22, pp. 61–91.
Bank of Greece (2004) Bank of Greece Annual Report. Available at: http://www.bankofgreece.gr/en/
publications/report.htm
Banker, R.D., Charnes, A. and Cooper W.W. (1984) Some models for estimating technical and scale
inefficiencies in data envelopment analysis, Management Science, 30, pp. 1078–1092.
Barajas, Adolfo, Steiner, Roberto and Salazar, Natalia (2000) Foreign investment in Colombia’s finan-
cial sector, in: S. Claessens and M. Jansen (Eds), The Internationalization of Financial Services: Issues and
Lessons for Developing Countries (Boston: Kluwer Academic Press).
Bell, D., Kay, J. and Malley, J. (1996) A non-parametric approach to non-linear causality
testing,
Economics Letters, 51, pp. 7–18.
Berger, Allen N. and Mester, Lorretta J. (2003) Explaining the dramatic changes in performance of US
banks: technological change, deregulation, and dynamic changes in competition, Journal of Financial
Intermediation, 12, pp. 57–95.
Berger, Allen N., DeYoung, Robert, Genay, Hesna and Udell, Gregory F. (1999) Globalization of
financial institutions: evidence from cross-border banking performance, Working Paper 99–25,
Research Department, Federal Reserve Bank of Chicago.
Berger, Allen N., Hasan, Iftekhar and Klapper, Leora F. (2004) Further evidence on the link between
finance and growth: an international analysis of community banking and economic performance,
Journal of Financial Services Research, 25, pp. 169–202.
Bonin, John P., Hasan, Iftekhar and Wachtel, Paul (2005) Bank performance, efficiency and ownership
in transition countries, Journal of Banking and Finance, 29, pp. 31–53.
Boussofiane, Aziz, Dyson, Robert G. and Thanassoulis, Emmanuel (1991) Applied data envelopment
analysis, European Journal of Operational Research, 52, pp. 1–15.
Chang, Edward C., Hasan, Iftekhar and Hunter, William (1998) Efficiency of multinational banks: An
empirical investigation, Applied Financial Economics, 8, pp. 689–696.
Charnes, A., Clark, C.T., Cooper, W.W. and Golany, B. (1985) A developmental study of data envelop-
ment analysis in measuring the efficiency of maintenance units in the US Air Forces, Annals of
Operations Research, 2, pp. 95–112.
Charnes, A., Cooper, W.W. and Rhodes, E. (1978) Measuring the efficiency of decision making units,
European Journal of Operational Research, 2, pp. 429–444.
Chung, Shu-Hsing, Lee, Amy Hsin-I, Kang, He-Yau and Lai, Chih-Wei (2008) A DEA window
analysis on the product family mix selection of a semiconductor fabricator,  Expert Systems with
Applications, 35, pp. 379–388.
Cleveland, William S. (1979) Robust locally weighted regression and smoothing scatterplots, Journal of
the American Statistical Association, 74, pp. 829–836.
Cleveland, William S. and Devlin, Susan J. (1988) Locally weighted regression: an approach to
regression analysis by local fitting, Journal of the American Statistical Association, 83, pp. 596–610.
Coelli, Timothi J., Prasada Rao, D.S., O’Donnell, Christopher J. and Battese, George E. (2005)  An
Introduction to Efficiency and Productivity Analysis, 2nd edn (USA: Kluwer Academic Publishers).
Crystal, Jennifer B., Dages, Gerard and Goldberg, Linda (2001) Does foreign ownership contribute to
sounder banks in emerging markets? The Latin American experience, Federal Reserve Bank of
NEW York Staff Reports, vol. 137.
Das, Abhiman and Ghosh, Saibal (2006) Financial deregulation and efficiency: An empirical analysis
of Indian banks during the post reform period, Review of Financial Economics, 15, pp. 193–221.
Delis, Manthos D., Koutsomanoli-Fillipaki, Anastasia, Staikouras, Christos K. and Gerogiannaki,
Katerina (2009) Evaluating cost and profit efficiency: a comparison of parametric and nonparamet-
ric methodologies, Applied Financial Economics, 19, pp. 191–202.www.wlunwen.com
DeYoung, Robert and Nolle, Daniel E.www.51lunwen.org (1996) Foreign-owned banks in the United States: Earning
market share or buying it? Journal of Money, Credit and Banking, 28, pp. 622–636.
Drake, Leigh, Hall, Maximilian J.B. a
nd Simper, Richard (2006) The impact of macroeconomic and
regulatory factors on bank efficiency: A non-parametric analysis of Hong Kong’s banking system,
Journal of Banking and Finance, 30, pp. 1443–1466.
Dyson, R.G., Allen, R., Camanho, A.S., Podinovski, V.V., Sarrico, C.S. and Shale, E.A. (2001) , Pitfalls
and protocols in DEA, European Journal of Operational Research, 132, pp. 245–259.
Fries, Stephen and Taci, Anita (2005) Cost efficiency of banks in transition: Evidence from 289 banks in
15 post-communist countries, Journal of Banking and Finance, 29, pp. 55–81.
Hasan, Iftekhar and Hunter, William C. (1996) Efficiency of Japanese multinational banks in the
United States, in: A.H. Chen (Ed.),  Research in Finance,  vol. 14, pp. 157–173 (London: JAI
Press).
Hasan, Iftekhar and Lozano-Vivas, Ana (1998) Foreign banks, production technology, and efficiency:
Spanish experience. Paper presented at the Georgia Productivity Workshop III, Athens, Georgia.
Hasan, Iftekhar, Koetter, Michael and Wedow, Michael (2007) The quality of banking and regionalwww.wlunwen.com
growth, Deutsche Bundesbank Discussion Paper Series 2: Banking and Financial Studies No 10/
2007.
Hauner, David (2005) Explaining efficiency differences among large German and Austrian banks,
Applied Economics, 37, pp. 969–980.
Havrylchyk, Olena (2006) Efficiency of the Polish banking industry: Foreign versus domestic banks,
Journal of Banking and Finance, 30, pp. 1975–1996.
Hymer, Stephen H. (1960) The international operations of national firms: a study of direct foreign investment. PhD Dissertation. Published posthumously. The MIT Press, 1976. Cambridge, Mass.
Jacoby, William G. (2000) Loess: a nonparametric, graphical tool for depicting relationships between variables, Electoral Studies, 19, pp. 577–613.
Kosmidou, Kyriaki, Pasiouras, Fotios and Tsaklanganos, Angelos (2007) Domestic and multinational
determinants of foreign bank profits: The case of Greek banks operating abroad, Journal of Multinational Financial Managementwww.51lunwen.org, 17, pp. 1–15.
Kosmidou, K., Pasiouras, F., Doumpos, M. and Zopounidis, C. (2004) Foreign versus domestic banks’performance in the UK: A multicriteria approach, Computational Management Science, pp. 329–343.
Kraft, Evan, Hofler, Richard and Payne, James (2006) Privatization, foreign bank entry and bankwww.wlunwen.com
efficiency in Croatia: a Fourier-flexible function stochastic cost frontier analysis,  Applied
Economics, 38, pp. 2075–2088.
Kumbhakar, Subal C. and Tsionas, Efthymios G. (2008) Scale and efficiency measurement using a
semiparametric stochastic frontier model: evidence from the U.S. commercial banks,  Empirical
Economics, 34, pp. 585–602.
Lensink, R. and Hermes, N. (2004) The short-term effects of foreign bank entry on domestic bank
behaviour: Does economic development matter? Journal of Banking and Finance, 28, pp. 553–568.
Levine, Ross (1996) Foreign banks, financial development, and economic growth, in: E.B. Claude (Ed.),International Financial Markets (Washington, DC: AEI Press).
Levine, Ross (2005) Finance and growth: theory and evidence, in: P. Aghion and S. Durlauf (Eds),Handbook of Economic Growth, 1st edn, Vol. 1, Ch. 12, pp. 865–934.
Mahajan, Arvind, Rangan, Nanda and Zardkoohi, Asghar (1996) Cost structures in multinational and domestic banking, Journal of Banking and Finance, 20, pp. 283–306.
Maudos, J., Pastor, J.M. and Perez, F. (2002) Competition and efficiency in the Spanish banking sector:The importance of specialization, Applied Financial Economics, 12, pp. 505–516.
Noulas, Athanasios G. (2001) Deregulation and operating efficiency: the case of the Greek banks,Managerial Finance, 27, pp. 35–47.
Nunamaker, Thomas R. (1985) Using data envelopment analysis to measure the efficiency of non-
profit organizations: a critical evaluation, Managerial and Decision Economics, 6, pp. 50–58.www.wlunwen.com
Okuda, Hidenobu and Rungsomboon, Suvadee (2006) Comparative cost study of foreign and Thai
domestic banks in 1990–2002: Is policy implications for a desirable banking industry structure, Journal of Asian Economics, 17, pp. 714–737.
Pasiouras, Fotios (2008a) Estimating the technical and scale efficiency of Greek commercial banks: the impact of credit risk, off-balance sheet activities, and international operations,  Research in
\ International Business and Finance, 22, pp. 301–308.
Pasiouras, Fotios (2008b) International evidence on the impact of regulations and supervision on banks’ efficiency: an application of two-stage data envelopment analysis,  Review of Quantitative Finance & Accounting, 30, pp.www.51lunwen.org 187–223.
Pasiouras, Fotios, Liadaki, Aggeliki and Zopounidis, Constantin (2008) Bank efficiency and shareperformance: Evidence from Greece, Applied Financial Economics, 18, pp. 1121–1130.
Peek, Joe and Rosengren, Eric S. (2000) Implications of the globalization of the banking sector: theLatin American experience, New England Economic Review,  September/October, pp. 45–62.
Rao, Ananth (2005) Cost frontier efficiency and risk-return analysis in an emerging market,
International Review of Financial Analysis, 14, pp. 283–303.
Rogers, Kevin E. (1998) Nontraditional activities and the efficiency of US commercial banks, Journal ofBanking and Finance, 22, pp. 467–482.