Journal Articles

Permanent URI for this collectionhttps://mro.massey.ac.nz/handle/10179/7915

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    An MCDA composite index of bank stability using CAMELS ratios and shannon entropy
    (Springer Science+Business Media, LLC, 2024-05-09) Boubaker S; Ngo T; Samitas A; Tripe D
    This study uses the multi-criteria decision-analysis (MCDA) approach to construct a composite performance index (CPI) directly from the CAMELS financial ratios. The CPI has several promising characteristics, such as (i) being an absolute measure of performance that allows for adding or removing data without affecting the existing scores; (ii) employing CAMELS ratios directly in its calculation without the need for normalization or imputation of positive values; (iii) employing the dynamic weighting system of data envelopment analysis (DEA); (iv) providing more robust insights on the Vietnamese banking system under the Shannon entropy approach; and (v) can be an alternative measure of bank stability, compared to the CAMELS ratings and z-scores. Based on a rich dataset of 45 Vietnamese banks spanning from 2002 to 2020, our findings suggest that the proposed CPI could offer an overall view consistent with other approaches for measuring banking sector performance and stability and identifying specific strengths and weaknesses of banks.
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    Impact of gender and governance on microfinance efficiency
    (Elsevier, 2018-03) Bibi UB; Ozer-Balli H; Matthews CM; Tripe DT
    This study examines the efficiency of South Asian microfinance institutions (MFIs) using Data Envelopment Analysis. Bias corrected efficiency estimates for the individual MFIs are regressed on a set of explanatory variables (including governance and gender) employing the double bootstrap truncated regression approach (Simar & Wilson, 2007) and panel data regression. First stage results suggest that South Asian MFIs are more financially efficient than socially efficient. More precisely, we find that these MFIs are technically inefficient but scale efficient, and that there was some improvement in financial efficiency over time. The relatively low average efficiency scores show that there is quite a bit of variation in microfinance efficiency. Second stage regression reveals that female loan officers are positive determinants of MFIs’ efficiency. We find a strong association between a MFI’s governance and its financial and social efficiency.