Room: 507

Time: 10:45 - 12:15
Session Chair: Jaiwat Pathompong, NIDA Business School

Opening the Black Box of Bank Efficiency in India using a Network DEA model
Sunil Kumar, South Asian University
The objective of this paper is to present a holistic approach for measuring overall bank efficiency and its decomposition in intermediation and operating efficiencies. Recently developed two-stage network DEA (NDEA) model by Liang et al. (2008) has been used for obtaining intermediation and operational efficiencies along with overall bank efficiency. The empirical results reveal that the operating inefficiency is the dominant source of overall bank inefficiency in Indian banking sector. Another interesting finding is that public sector banks are more efficient than private banks in the intermediation stage of production process, while private banks are more efficient in the operating stage of production.

The Impact of Diversification on Efficiency of Commercial Banks: Evidence from Vietnam
Long Nguyen Viet, International University - Vietnam National University
Anh Phuong Nguyen, International University - Vietnam National University
Vietnam’s economy whose banking system dominates the financial market has been struggling to restructure, reform governance and build up merge and acquisition. This paper aims to address at which level of efficiency the Vietnamese commercial banks are operating and how diversification affects its efficiency. Diversification is investigated in three dimensions: assets, income and funding using the modified Herfindahl-Hirschman Index (HHI), applied to a sample of Vietnamese commercial banks over 10-year period 2006 - 2015. The efficiency score is obtained using the intermediation model of banking activity.

Financing Preferences and Practices of Indian SMEs
Satish Kumar, Malaviya National Institute of Technology
Purnima Rao, Malaviya National Institute of Technology
This exploratory study examines the financial preferences and practices of small and medium-sized enterprises (SMEs) in India. We analyse the data using descriptive statistics, paired t-test, and Pearsonโ€™s coefficient of correlation. The findings indicate that major financing preferences of SMEs and how these preference differs from the present financial resources utilized by these firms. Preference for internal funds is higher among all other resources followed by bank financing, trade credit and funds from family friends and relatives. This study highlights the existing financial resources available for SMEs in India and identifies unutilized financial resources. Given the relatively low response rate, the findings are suggestive, rather than definitive.

Third Party Funding under International Investor-State Arbitration: Risks for Respondent States
Xinglong Yang, Thammasat University
The last six years have witnessed a tremendous increase in participation of third-party funders in investor-state arbitration. Even the existence of third party funding could resolve the financial concern for disputing investors, which provides them a more equal position with respect to respondent states and a chance to access to justice, but since international arbitral tribunal has in principle no competence to address third party funding agreement because such agreement is disconnected from arbitration agreement. Thus the involvement of third party funding in arbitration shall bring vital risks to respondent states, such as the risk on independence and impartiality of arbitrators, the risk on security for costs, and the risk on allocation of cost.