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The future of large, internationally active banks : does scale define the winners?

Hughes, Joseph P.; Mester, Loretta J. - 2015

Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks – that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...

Persistent link: https://www.econbiz.de/10011416928

Measuring the performance of banks : theory, practice, evidence, and some policy implications

Hughes, Joseph P.; Mester, Loretta J. - 2013

The unique capital structure of commercial banking - funding production with demandable debt that participates in the economyś payments system - affects various aspects of banking. It shapes banks ́comparative advantage in providing financial products and services to informationally opaque...

Persistent link: https://www.econbiz.de/10009774419

The Dollars and Sense of Bank Consolidation

Hughes, Joseph P.; Lang, William; Mester, Loretta J.; … - Financial Institutions Center, Wharton School of Business - 1998

expected profit, the riskiness of profit, profit efficiency, market value, market-value efficiencies, and the risk of … insolvency. Our estimates of expected profit, profit risk, and profit efficiency are based on a structural model of leveraged … Moon (1996). Here, we also estimate two additional measures that gauge efficiency in terms of the market values of assets …

Persistent link: https://www.econbiz.de/10005838120

Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?

Berger, Allen N.; Mester, Loretta J. - Financial Institutions Center, Wharton School of Business - 1997

Over the past several years, substantial research effort has gone into measuring the efficiency of financial … measured efficiency. This paper examines several possible sources, including differences in efficiency concept, measurement …

Persistent link: https://www.econbiz.de/10005838135

Measuring the Performance of Banks: Theory, Practice, Evidence, and Some Policy Implications

Hughes, Joseph P.; Mester, Loretta J. - Department of Economics, Rutgers University-New Brunswick - 2013

The unique capital structure of commercial banking – funding production with demandable debt that participates in the economy’s payments system – affects various aspects of banking. It shapes banks’ comparative advantage in providing financial products and services to informationally...

Persistent link: https://www.econbiz.de/10010797421

The performance of financial institutions: Modeling, evidence, and some policy implications

Hughes, Joseph P.; Mester, Loretta J. - 2018

The unique capital structure of commercial banking - funding production with demandable debt that participates in the economy's payments system - affects various aspects of banking. It shapes commercial banks' comparative advantage in providing financial products and services to informationally...

Persistent link: https://www.econbiz.de/10012028612

The future of large, internationally active banks: Does scale define the winners?

Hughes, Joseph P.; Mester, Loretta J. - 2015

Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks - that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...

Persistent link: https://www.econbiz.de/10011687916

Measuring agency costs and the value of investment opportunities of U.S. bank holding companies with stochastic frontier estimation

Hughes, Joseph P.; Mester, Loretta J.; Moon, Choon-Geol - 2016

By eliminating the influence of statistical noise, stochastic frontier techniques permit the estimation of the best-practice value of a firm´s investment opportunities and the magnitude of a firm´s systematic failure to achieve its best-practice market value - a gauge of the magnitude of...

Persistent link: https://www.econbiz.de/10011687921

Market discipline working for and against financial stability: The two faces of equity capital in U.S. commercial banking

Hughes, Joseph P.; Mester, Loretta J.; Moon, Choon-geol - 2016

The second Basel Capital Accord points to market discipline as a tool to reinforce capital standards and supervision in promoting bank safety and soundness. The Bank for International Settlements contends that market discipline imposes strong incentives on banks to operate in a safe and...

Persistent link: https://www.econbiz.de/10011687927

What Explains the Dramatic Changes in Cost and Profit Performance of the U.S. Banking Industry?

Berger, Allen N.; Mester, Loretta J. - Financial Institutions Center, Wharton School of Business - 1999

from the cross-section efficiency literature. Our most striking result is that during 1991-1997, cost productivity worsened …

Persistent link: https://www.econbiz.de/10005794283