The risk-based profit efficiency analysis for Chinese city banks in short-run

ABSTRACT

This study is to pay attention to the profit performance analysis with the risk consideration. This study takes risk factor into the Nerlovian profit efficiency to develop a risk-based profit efficiency. By investigating Chinese city banks, this study finds that the profit loss of Chinese city banks is mainly attributed to allocative inefficiency, and they have a significant improvement in allocative efficiency.

KEYWORDS:

• Profit efficiency
• Chinese city bank
• short-run
• risk consideration

JEL CLASSIFICATION:

• G21
• C14
• C44

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

The paper is supported by the Natural Science Foundation of Zhejiang Province [Grant No. LQ19F030003].