EFFICIENCY AND PRODUCTIVITY OF TURKISH SECURITIES FIRMS: 2011-2015

Year 2017, Volume: 3 Issue: 1, 75 - 80, 30.06.2017

Oktay Tas , Gokben Cevikcan

https://doi.org/10.17261/Pressacademia.2017.394

Abstract

Employing a Data Envelopment Analysis (DEA) approach,
we investigate the technological progress, efficiency, and productivity of the
Turkish securities firms between 2010 and 2015. After measuring the performance
of these firms with DEA analysis, we combine the efficiency scores with
contingency factors (ownership, size and bank affiliation) in a panel
regression analysis in order to determine the effects. Our results indicate
that the securities industry in general is less efficient than the existing technology
allows. The relative productivity of the Turkish securities industry in general
improved. Foreign acquisition has positive significant contribution to the
efficiency of securities firms. Smaller firms, due to their inability to
respond to technological innovation, experienced especially large decreases in
both efficiency and productivity. 

Keywords

Securities firms, efficiency, data envelopment analysis, panel regression, capital markets

References

• Aktas, H., & Kargin, M. (2007). Efficiency and productivity of brokerage houses in Turkish capital market. Iktisat Isletme ve Finans, 22, 97.
• Bayyurt, N., & Akın, A. (2014). Effects of foreign acquisitions on the performance of securities firms: evidence from Turkey. Procedia—Social and Behavioral Sciences, 150, 156–161
• Ashton JK (2001). Cost efficiency characteristics of British retail banks. Serv Indust J 21: 159–174
• Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 3, 429–444.
• Chen, S; (2005) “The impact of government regulation and ownership on the performance of securities companies: Evidences from China” Global Finance Journal, Volume 16 Issue 2, 113-124
• Demir, N., Mahmud, S. F., & Babuscu, S. (2005). The technical inefficiency effects of Turkish banks after financial liberalization. The Developing Economies, 43, 396– 411.
• Farrell, M.J. (1957). "The Measurement of Productive Efficiency." Journal of the Royal Statistical Society, Series A, 120,. 253-90.
• Fukuyoma H., Weber W. L.(1999), The efficiency and productivity of Japanese securities firms, 1988 – 93. Japan and the World Economy, 11:115 – 33.
• Hu, JL. & Fang, CY (2010) Do market share and efficiency matter for each other? An application of the zero-sum gains data envelopment analysis, Journal of the Operational Research Society Volume 61, Issue 4, 647–657
• Ihsan, I. V. (2007). Bank ownership and productivity developments: evidence from Turkey. Studies in Economics and Finance, 24, 115–139.
• Isik, I. (2008). Productivity, technology and efficiency of de novo banks: a counter evidence from Turkey. Journal of Multinational Financial Management, 18, 427– 442.
• Kartal F. (2013) Development Of Capital Markets In Turkey And Analysıs Of Fınancıal Structure Of The Intermediary Instıtutıons, Eurasian Journal of Business and Management, 1(1), 1-14
• Lee, D.-G., Kim, J., & Kang, H. (2014). Do larger brokerage firms enjoy larger economies of scale and scope? Seoul Journal of Economics, 27, 445–467.
• R.N.Serasinghe, M.B.P. Mahipala and L.H.P. Gunaratne(2003). Comparison of Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) to Evaluate Technical Efficiency: Tropical Agricultural Research Vol. IS: 217-225
• Wang K.-L., Tseng Y.-T., Weng C.-C. (2003). A study of production efficiencies of integrated securities firms in Taiwan. Applied Financial Economics, 13:159 – 67.