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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 5 Issue 10 pp. 969-974 , 2015

The effects of efficiency on abnormal return: Evidence from banking industry Pages 969-974 Right click to download the paper Download PDF

Authors: Niloofar Tayer Farahani, Mohammad Reza Asgari

DOI: 10.5267/j.msl.2015.7.006

Keywords: Banking industry, Efficiency, Tehran Stock Exchange

Abstract: Efficiency plays essential role for improving the performance of banking industry. In this paper, we present an empirical investigation to study the effect of efficiency on abnormal return. The proposed study collects the necessary information from official statements as well as historical data over the period 2009-2013 reported on Tehran Stock Exchange to examine the relationship between efficiency and abnormal return. Using regression analysis, the study has determined a meaningful, positive but weak relationship between abnormal return and efficiency. However, the study does not find any meaningful relationship between bank size and abnormal return.

How to cite this paper
Farahani, N & Asgari, M. (2015). The effects of efficiency on abnormal return: Evidence from banking industry.Management Science Letters , 5(10), 969-974.

Refrences
Aftab, M., Ahamad, S., Ullah, W., & Sheikh, R. A. (2011). The impact of bank efficiency on share performance: Evidence from Pakistan. African Journal of Business Management, 5(10), 3975-3980.

Ahmadi, Y & Makarani, K. (2013). Investigating the persistence of earnings components and pricing test of abnormal changes in cash.Management Science Letters , 3(3), 763-770.

Charnes A, Cooper, W. W., Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of the Operational Research, 2, 429–44.

Charnes A, Cooper W. W., Lewin, A., Seiford, L. M. (1994). Data envelopment analysis: theory, methodology and applications. Massachusetts: Kluwer Academic Publishers.

Eltivia, N. Sudarma, M. Rosidi. & Saraswati, E. (2014). The effect of cost efficiency on stock performance of listed bank in Indonesia. International Journal of Economic Resources, 5i2, 50-56.

Kohers, T., Huang, M. H., & Kohers, N. (2000). Market perception of efficiency in bank holding company mergers: the roles of the DEA and SFA models in capturing merger potential. Review of Financial Economics, 9(2), 101-120.

Liadaki, A., & Gaganis, C. (2010). Efficiency and stock performance of EU banks: Is there a relationship?. Omega, 38(5), 254-259.

Vafaee, S., & Darabi, R. (2015). The effects of spread on abnormal return: Evidence from Tehran Stock Exchange. Management Science Letters, 5(9), 739-742.

Yeh, Q. J. (1996). The application of data envelopment analysis in conjunction with financial ratios for bank performance evaluation. Journal of the Operational Research Society, 47(8), 980-988.
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Journal: Management Science Letters | Year: 2015 | Volume: 5 | Issue: 10 | Views: 2852 | Reviews: 0

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