Isenberg School of Management, University of Massachusetts, Amherst, MA, United States; Instituto Superior de Economia e Gestão, Technical University of Lisbon, Lisbon, Portugal; Department of Actuarial Science, University of Lagos, Lagos, Nigeria
Assaf, A.G., Isenberg School of Management, University of Massachusetts, Amherst, MA, United States; Barros, C., Instituto Superior de Economia e Gestão, Technical University of Lisbon, Lisbon, Portugal; Ibiwoye, A., Department of Actuarial Science, University of Lagos, Lagos, Nigeria
This study analyses the cost-efficiency of Nigerian banks pre and post the consolidation period. The researchers account for bank heterogeneity using the Bayesian random frontier model, which in this context provides a better fit than the traditional stochastic frontier model. From the efficiency inferences, it is shown that the cost-efficiency of Nigerian banks has increased post the consolidation period to reach its highest average of 91.21% in 2007. The study discusses the potential impact of consolidation on the efficiency results and provides direction for future research. © 2012 Copyright Taylor and Francis Group, LLC.
