Browsing by Author "Nartey, S.B."
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Item Bank productivity in Africa(International Journal of Productivity and Performance Management, 2019-06) Nartey, S.B.; Osei, K.A.; Sarpong-Kumankoma, E.Purpose – The purpose of this paper is to provide a total factor productivity index for the African banking industry. It also investigates the impact of some internal and external determinants affecting bank productivity. Design/methodology/approach – The biennial Malmquist productivity index and various regression models (ordinary least squares, Tobit and truncated bootstrapped regression) are employed in analyzing data from 120 banks in 24 African countries from 2007 to 2012. Findings – The results indicate a general decline in productivity of banks in Africa, largely due to inadequate technological progress. State banks are found to be more productive than foreign and private banks. The regression analyses showed that non-executive directors, leverage, management quality, credit risk, competition and exchange rate have significant impact on bank productivity, but ownership and CEOduality do not. Practical implications – The results have implications for management of banks, governments and regulators. It shows the need for policy and investments that improve state-of-the art technology. The findings also seem to suggest poor management practices in input usage, especially in operational management, as well as costs emanating from non-interest sources. Bank managers need to address these deficiencies to improve productivity in African banking markets. Originality/value – A major contribution of this paper is the productivity index provided for the African banking industry. This study is also the first to apply the biennial Malmquist to analyze productivity in the African banking industry.Item Ownership Structure, Corporate Governance And Bank Productivity In Africa: A Biennial Malmquist Approach(University of Ghana, 2017-07) Nartey, S.B.The study provides a total factor productivity index for the banking industry. The study decomposes the components of overall productivity to determine drivers of productivity. Also, it seeks to examine the bank operational effectiveness by comparing any possible differences between efficiency and productivity scores among state, private and foreign banks. Finally, the study investigates the impact of ownership structure and corporate governance on bank productivity and also examines the effect of foreign banks’ presence on local bank productivity. Using panel data from 2008 to 2012 sourced from Bankscope, the Biennial Malmquist Index and the truncated bootstrapped regression technique, the study finds a general decline in Africa’s bank productivity. This may be as a result of the lack of technological advancements and innovation. Even though private banks are the most efficient, comparisons indicate that state banks in Africa are more productive. This may be due to the home-field advantage. Among regional blocs, results indicate that banks in West Africa are the most productive whiles the collective productivity scores for banks in North Africa are stagnant. Over the period, bank productivity in Southern Africa and East Africa is on the decline. European banks have a negative and significant impact on productivity in Africa. For perspectives on policy, it is recommended that management of banks, governments, regulators and all stakeholders in Africa should continuously invest in state-of-the art technology, adopt innovative processes in their operations and implement cost management strategies especially in their non-traditional activities to boost productivity. Keywords: Productivity, Efficiency, Biennial Malmquist index, Banks, Ownership, Corporate governance, Truncated bootstrapped regression.