Conference Paper
Reconsidering the degree of inefficiency of financial institutions
Deltas, George; Becher, David A.; Pinteres, George (2006)
There is an extensive existing literature on the cost efficiency of banking institutions that estimates cost inefficiencies of the order of 15 to 30%. The persistence of such staggering inefficiencies is surprising given the competitive nature of the industry. Using a novel estimation framework that complements traditional cost function estimation with a revenue analysis, we find that much of what the prior literature classified as inefficiency is actually productive expenditure. This expenditure effectively increases the quality of the banking institution?s products and results in higher ...
Proceedings , Paper 1026

Conference Paper
Corporate governance of bank mergers
Campbell, Terry L.; Becher, David A. (2004)
By investigating the extent to which target directors bargain in their own interests during negotiations between merging banks, we document a strong inverse relation between merger premium and target director retention. This relation holds for both executive (inside) directors and independent outside directors, and other governance mechanisms of targets and bidders fail to diminish this finding. Moreover, individual target director retention is conditioned by the relative size but not by prior target performance. Overall, our results suggest some target directors exercise their bargaining ...
Proceedings , Paper 918

Conference Paper
Incentive compensation for bank directors: the impact of deregulation
Campbell, Terry L.; Frye, Melissa B.; Becher, David A. (2003)
Proceedings , Paper 871