nep-ara New Economics Papers
on Arab World
Issue of 2011‒04‒09
four papers chosen by
Quentin Wodon
World Bank

  1. Technical efficiency analysis of banks in major oil exporting Middle East countries By Onour, Ibrahim; Abdalla, Abdelgadir
  2. Scale and Technical Efficiency of Islamic Banks in Sudan: Data Envelopment Analysis By Onour, Ibrahim; Abdalla, Abdelgadir
  3. Timeliness of financial reporting in emerging capital markets:Evidence from Turkey By Turel, Asli
  4. Firm Size and the Choice of Export Mode By Jennifer Abel-Koch

  1. By: Onour, Ibrahim; Abdalla, Abdelgadir
    Abstract: This paper investigates efficiency performance of thirty six banks operating in Gulf Cooperation Council (GCC) countries during the period 2006-2008 . Our results indicate in general GCC banks showed considerable pure technical efficiency in the past three years with the year 2007 exhibit the most efficient year, as the number of pure technical efficient banks reached 33 percent of the total banks compared to 25 percent in 2008. The fall in technical efficiency in 2008 is due to simultaneous fall in pure technical efficiency and the scale efficiency. The output loss caused by scale inefficiency (fall of scale operations below optimum level) in 2008 is estimated 16 percent compared to 5 percent in 2007. Our results also indicate scale efficiency is inversely related to banks' size implying a major source of scale inefficiency in GCC banks is due to sub-optimal size of operations. It is also indicated in the paper that scale efficiency is inversely related to risk, implying effective risk management policies may also enhance scale efficiency.
    Keywords: technical efficiency;scale efficiency;DEA
    JEL: C44 C63 C61
    Date: 2011–01–25
  2. By: Onour, Ibrahim; Abdalla, Abdelgadir
    Abstract: This paper employs several efficiency measures and productivity changes using Data Envelopment Analysis (DEA) to investigate efficiency performance of Islamic banks in Sudan. Our results indicate, among twelve banks included in our sample only two banks, (the largest bank in the group which is government owned, and middle sized, private bank), score technical efficiency level (i.e. scale and pure technical efficiency). While the smallest bank in the group (private owned), score pure technical efficiency (i.e., managerial efficiency), but scale inefficient. This result adds additional evidence to the existing literature that ownership (government versus private) is not a constraint of managerial and scale efficiency but bank’s size is important factor for scale efficiency.
    Keywords: DEA;Banks efficiency;scale efficiency
    JEL: C44 C02 C15
    Date: 2010–11–14
  3. By: Turel, Asli
    Abstract: Timely financial reporting is an essential ingredient for a well-functioning capital market. This study has two objectives. The first one is to measure the extend of timeliness of financial reporting in a developing country, Turkey. The second one is to establish the impact of both company specific and audit related factors on timeliness of financial reporting in Turkey. This study reports on the results of an empirical investigation of the timeliness of financial reports by 211 non-financial companies listed on the Istanbul Stock Exchange. The descriptive analysis indicates that 59% of the companies that prepares separate financial statements and 66% of the companies that prepares consolidated financial statements release their financial statements less than the maximum time allowed after the financial year-end. 28% of the companies that prepares separate financial statements and 16% of the companies that prepares consolidated financial statements exceeded the regulatory deadline. The multivariate regression analysis indicates that both sign of income, audit opinion, auditor firm and industry affect timeliness. The findings indicate that the companies, which report net income, have standard audit opinion, and operate in manufacturing industry release their financial statements earlier while the companies are audited by the big four audit firms report their financial statements later.
    Keywords: Timeliness; financial reporting; accounting; Turkey
    JEL: M41 M4
    Date: 2010–11
  4. By: Jennifer Abel-Koch (Department of Economics, Johannes Gutenberg-Universitaet Mainz, Germany)
    Abstract: In international trade models, it is typically assumed that manufacturers ship their goods directly to their foreign customers. In reality, however, many manufacturers call in trade intermediaries to perform this task for them. Which manufacturers make use of this option? Theory suggests that it is mostly the small firms which are not profitable enough to cover the high fixed costs of building an own distribution network abroad. Large and eefficient firms, on the contrary, prefer to export their goods directly. The present paper brings this hypothesis to a test. Using survey data from the World Bank Enterprise Survey conducted in Turkey in 2008, it shows that there is indeed a negative correlation between firm size and the relative importance of intermediated exports. This result is highly robust to the inclusion of a variety of controls, different estimation methods, and different measures of firm size.
    Keywords: Heterogeneous firms, intermediated trade
    JEL: F12 F14
    Date: 2011–03–29

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