Despite the importance of banking performance, there are just few studies of the Indonesian
economy. In addition, studies on banking efficiency are not only limited in number, but also
in the methods applied to estimate performance. There are few studies using the current more
acceptable production frontier methodology: Harada and Ito (2005), Viverita (2008), Hadad
et al. (2008; 2009) and Margono and Sharma (2010), of which the last two employed
stochastic frontier analysis SFA method only. To our knowledge, there is yet a study to
examine the efficiency using both non-parametric and parametric approaches as well as cost and profit efficiency measures to identify the possible factors influencing performance. Prior studies are about identifying some basic performance scores only.
Despite the importance of banking performance, there are just few studies of the Indonesianeconomy. In addition, studies on banking efficiency are not only limited in number, but alsoin the methods applied to estimate performance. There are few studies using the current moreacceptable production frontier methodology: Harada and Ito (2005), Viverita (2008), Hadadet al. (2008; 2009) and Margono and Sharma (2010), of which the last two employedstochastic frontier analysis SFA method only. To our knowledge, there is yet a study toexamine the efficiency using both non-parametric and parametric approaches as well as cost and profit efficiency measures to identify the possible factors influencing performance. Prior studies are about identifying some basic performance scores only.
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