Browsing by Author "Boďa, Martin"

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    Measuring financial intermediation
    (Technická Univerzita v Liberci, ) Boďa, Martin; Zimková, Emília; Ekonomická fakulta
    The paper proposes a model for measuring the attainment in financial intermediation that answers to situations when functions of financial intermediaries from a macroeconomic viewpoint may be primarily reduced to taking deposits and providing loans (which is characteristic of financial sectors of Post-Communist economies or economies with underdeveloped financial markets). The model builds on the methodology of Data Envelopment Analysis [DEA] since it estimates the production possibility set in a traditional manner as a conical or convex hull of observed production activities. Unlike DEA, the model seeks simultaneously to deflate only deposits and inflate loans to a greatest extent possible so that the production activity of a financial intermediary (typically a bank) remains feasible and stays in the estimated production possibility set. The model translates the identified slacks in deposits and loans into a metric that measures by which factor it is feasible to increase multiplicatively the actually observed loan-to-deposit ratio of a financial intermediary. The metric is computable for individual banks on a yearly basis, but is equally aggregable for a bank over the entire period. In contrast to traditional usage of DEA for efficiency measurement, the proposed model is associated more with the notion of productivity in financial intermediation rather than with the concept of efficiency. The model is presented and demonstrated in a case study of Slovak commercial banks for the period from 2008 to 2016. It is found that only smaller organizational units (smaller banks and branch offices of foreign banks) were in the past few years capable of financial intermediation at the best utilization of their resources, which is an observation relevant from a regulatory point of view.
  • Thumbnail Image
    Item
    Methodology of Industry Statistics: Averages, Quantiles and Responses to Atypical Value
    (Technická Univerzita v Liberci, ) Boďa, Martin; Úradníček, Vladimír; Ekonomická fakulta
    The paper notices troublesome aspects of compiling industry statistics for the purpose of inter-enterprise comparison in corporate financial analysis. Whilst making a caveat that this issue is unbeknownst to practitioners and underrated by theorists, the goal of the paper is two-fold. For one thing, the paper demonstrates that financial ratios are inclined to frequency distributions characteristic of power-law (fat) tails and their typical shape precludes a simple treatment. For the other, the paper explores different approaches to compiling industry statistics by considering trimming and winsorizing cleansing protocols, and by confronting trimmed, winsorized as well as quantile measures of central tendency. The issues are empirically illustrated on data for a great number of Slovak construction enterprises for two years, 2009 and 2018. The empirical distribution of eight financial ratios is studied for troublesome features such as asymmetry and power-law (fat) tails that hamper usefulness of traditional descriptive measures of location without considering different possibilities of handling atypical values (such as infinite and outlying values). The confrontation of diverse approaches suggests a plausible route to compiling industry statistics that consists in reporting a 25% trimmed mean alongside 25% and 75% quantiles, all applied to trimmed data (i.e. data after discarding infinite values). The paper also highlights the sorely unnoticed fact that the key ratio of financial analysis, return on equity, may easily attain non-sense values and these should be removed prior to compiling financial analysis; otherwise, industry statistics is biased upward regardless of what measure of central tendency is made use of.
  • Thumbnail Image
    Item
    Twenty years of efficiency research in Czech and Slovak banking – A bibliometric analysis
    (Technická Univerzita v Liberci, ) Boďa, Martin; Zimková, Emília; Karaka, Anton; Ekonomická fakulta
    The article is a survey of 44 empirical studies that applied frontier techniques in analyzing efficiency of Czech and Slovak commercial banks in a hope to summarize the state of the art of efficiency research in Czech and Slovak banking. A sample of 44 journal articles was extracted from the Web of Science™ database, and a bibliometric analysis was conducted to identify the most active authors and most influential works to establish mutual relationships between them and to sketch the main research trajectories. The paper contributes to the extant literature by providing guidance for new researchers and identifying for efficiency research on Czech and Slovak banking: (i) the most productive authors as well as the works with the most impact; (ii) the network structure amongst the authors and works; and (iii) main paths of knowledge diffusion across the surveyed works. The findings indicate that efficiency research of Czech and Slovak banks grew out of global banking efficiency research and is thus its integral part. Lotka’s law applied to Czecho-Slovak banking efficiency research does not suggest that its productivity patterns are altogether different from its global counterpart. The first identifiable wave of research was represented by foreign authors who examined issues of economic transition and its impact on the performance of banks. This wave of research endured until about 2013, when the torch passed into the hands of authors of domestic provenience. The findings are useful in bridging the gap between the accumulated knowledge in the field and the new research directions.