Productivity and efficiency analysis of Australia banking sector under deregulation

This paper conducts productivity and efficiency analysis of banks operating in Australia since the deregulation of the Australian financial system in early 1980s. Applying data envelopment analysis (DEA), with a moving window, the Malmquist indices are determined in order to investigate the levels of and the changes in the efficiency of Australian banks over the period from 1983 to 200 I. The DEA window analysis is adopted in order to relieve the small sample problem that in previous studies has proved problematic in the study of the Australian banking sector. The pal1icular window used in this case has been carefully designed to ensure the robustness of the efficiencies scores to changes in the window width. A second-stage regression is conducted by using the unconditional bootstrap approach suggested by Xue and Harker (1999) to overcome the dependency and heteroskedasticity of DE A efficiency scores. The empirical results demonstrate the effect of deregulation on the performance of individual banks, banks of different organizational types and the entire Australian banking sector.

Input usage, output mix and industry deregulation: an analysis of the Australian dairy manufacturing industry

In this paper we estimate a Translog output distance function for a balanced panel of state level data for the Australian dairy processing sector. We estimate a fixed effects specification employing Bayesian methods, with and without the imposition of monotonicity and curvature restrictions. Our results indicate that Tasmania and Victoria are the most technically efficient states with New South Wales being the least efficient. The imposition of theoretical restrictions marginally affects the results especially with respect to estimates of technical change and industry deregulation. Importantly, our bias estimates show changes in both input use and output mix that result from deregulation. Specifically, we find that deregulation has positively biased the production of butter, cheese and powders.

The productivity and performance of Australia’s major banks since deregulation

The aim of this study is to present some measures of the performance of banks operating in Australia since the deregulation of the Australian financial system in early 1980s; including the periods of financial market instability (the early 1990s and mid to late 2000s). In undertaking this measurement two approaches will be used. The first simply applies standard financial indicators. The second approach applies data envelopment analysis (DEA), to determine Malmquist indices of the levels of and the changes in the efficiency and productivity of Australian banks. The empirical results demonstrate the effect of deregulation and periodic financial crisis’s on the performance of individual banks, and the major part of the Australian banking sector. Overall the productivity performance of the Australian banks tended to improve considerably in those periods of strongest economic growth (i.e. the mid 1980s and 2000s).

Epigenetic deregulation in pediatric acute lymphoblastic leukemia

Similar to most cancers, genome-wide DNA methylation profiles are commonly altered in pediatric acute lymphoblastic leukemia (ALL); however, recent observations highlight that a large portion of malignancy-associated DNA methylation alterations are not accompanied by related gene expression changes. By analyzing and integrating the methylome and transcriptome profiles of pediatric B-cell ALL cases and primary tissue controls, we report 325 genes hypermethylated and downregulated and 45 genes hypomethylated and upregulated in pediatric B-cell ALL, irrespective of subtype. Repressed cation channel subunits and cAMP signaling activators and transducers are overrepresented, potentially indicating a reduced cellular potential to receive and propagate apoptotic signals. Furthermore, we report specific DNA methylation alterations with concurrent gene expression changes within individual ALL subtypes. The ETV6-RUNX1 translocation was associated with downregulation of ASNS and upregulation of the EPO-receptor, while Hyperdiploid patients (> 50 chr) displayed upregulation of B-cell lymphoma (BCL) members and repression of PTPRG and FHIT. In combination, these data indicate genetically distinct B-cell ALL subtypes contain cooperative epimutations and genome-wide epigenetic deregulation is common across all B-cell ALL subtypes.

The myths big media peddle to demand deregulation

This article argues that big media in Australia promote three myths about rural and regional news in Australia as part of their case to deregulate the industry. These myths are that geography no longer matters in local news; that big media are the only ones who can save regional news; and that people in regional Australia can access less news that their city counterparts.

Workplace "bargaining" and the wages/working time nexus: counting the cost of decentralisation

The impact of deregulation on dispersion of earnings in Victoria has been
acknowledged in the findings of the recent task force enquiry into industrial relations in Victoria. This paper argues that the link between hours worked and rates of pay has played a significant role in this increased dispersion. Drawing upon detailed analysis of hours and wages in Victorian agreements, data is presented on declining take-home pay flowing from the loss of penalty rates. This, we argue, is attributable to
the lack of substantive and procedural protections available to Victorian workers under schedule 1A of the Workplace Relations Act, and formerly under the Victorian Employee Relations Act, 1992. We contrast these findings with collective agreements trading off penalty rates certified by the Australian Industrial Relations Commission, and Australian Workplace Agreements approved by the Office of the Employment
Advocate. We conclude by suggesting there is a scale of fair outcomes attached to the wages/hours trade-off, directly attributable to the various institutional mechanisms now influencing Australian wage determination.

The evolution of the Australian life insurance industry

The life insurance industry in Australia has traditionally been an important source of long term finance for both the public and private sector. However, very little historical analysis has been undertaken into an industry that constitutes a fundamental part of the economy's financial sector. The present climate of deregulation has initiated an irrevocable process of change within the industry. To comprehend the full implications of this change it is necessary to have an understanding of how the industry has evolved. This paper seeks to provide a background account of the growth of the life insurance industry in Australia highlighting the influences that have determined the structure of the industry.

Adaptation and change in the Australian life insurance industry : an historical perspective

In the wake of the deregulation of the financial sector in Australia in the 1980s and 1990s the life insurance industry has undergone a period of rapid change and reorganisation. Part of this adjustment has been the move towards the integration of financial service provision and the rise of bancassurance. This paper investigates the strategies adopted by Australian life insurers as they moved into the increasingly competitive environment triggered by the lifting of government restrictions on banking practices. It compares the approach of life insurers with that adopted in an earlier period of expansion and change. During the 1950s and 1960s an influx of foreign owned insurance companies into the Australian market precipitated the diversification of domestic life insurers into other insurance markets. The catalyst for change in both cases was the change in information costs brought about by the change in the competitive environment. The experience of the Australian life insurance market would suggest that there is a link between changing information costs and changing organisational structures. However this link is circumscribed by the institutional environment.

The employment effects of gender discrimination in Australia 1994-95

Interpreting the unexplained component of the gender wage gap as indicative of discrimination, the empirical literature to date has tended to ignore the potential impact wage discrimination may have on employment. Clearly, employment effects will arise if discrimination lowers the female offered wage and the labour supply curve is upward sloping. The empirical analysis employs the ABS Income Distribution Survey 1994–95 and finds evidence of both wage and associated employment effects. The analysis is replicated for the earlier period 1989–90. A comparison across time is of interest given the substantial deregulation of the Australian labour market over the period.

Online banking vs. bricks & mortar - or a hybrid model? A preliminary investigation of Australian and Indian banks

Deregulation, innovations in mobile and wireless technologies and media convergence, together with the rapid diffusion of the Internet, have opened up strategic business opportunities in the financial sector. With deregulation removing entry barriers, an increasing number of online banks are threatening the market share of ‘bricks and mortar’ banks. To survive this competition, and to leverage the new opportunities of online and mobile banking facilitated by the Internet, many banks have adapted a hybrid, ‘clicks and mortar’ model, to increase their profitability while reducing transaction costs. In this paper, we report the results of a preliminary analysis based on a few major banks in Australia and India, two diverse economies, to reveal some interesting insights.

New forms of organising : changing structures, processes and boundaries in a public sector institution

Globalisation, deregulation, privatisation, and advances in communications technologies have intensified competition and impacted on the structures, processes and boundaries that define organisations. Increased competition at both the local and global level calls for increased responsiveness and flexibility, and continuous improvement and innovation. As organisations endeavour to become more attentive and responsive to environmental trends, and customer needs and expectations, they are experimenting with different forms of organising. This has included flattening structures, devolving decision-making responsibility and encouraging greater collaboration and knowledge transfer across functional areas.

The William Angliss Institute of TAFE operates in the post-secondary sector which has experienced significant changes over the past decade as a result of: wide-ranging public sector reforms imposed by successive governments; budgetary cutbacks; accountability and performance improvement pressures; increased national and international competition, industrial relations changes and more demanding, sophisticated customers. This paper draws on the INNFORM Study's three organisational design dimensions of structure, process, and boundaries to examine the nature and degree of change that has taken place at the Institute. Case study findings indicate that while William Angliss has implemetted changes across the three design dimensions, the depth and breadth of these vary and this has impacted on overall performance outcomes. Its experience suggests that even when an organisation adopts a systemic approach and implements changes simultaneously across structure, process and boundaries, optimal performance benefits will not accrue unless these elemental changes are mutually reinforcing and complementary. It also suggests that improvement to processes, particularly communications and human resources practices must be an overarching consideration, as complementary change across all three design dimensions depends ultimately on the contribution and commitment organisational members are prepared to make.

The impact of change on employees : what do annual reports say?

As part of the accountability process public companies are required to report annually to stakeholders. Given the substantial investment in human capital, the disclosure of employment related policies, and the impact of changing policies and practices on employees, could be expected. Over the last few decades the UK banking sector has experienced major change. Increased competition, technology, regulation and deregulation have all contributed to changing practices, which have had a significant impact on employees. This paper examines changes in the banking sector, and the employee information reported in the annual reports of a large UK bank, over the period 1980 to 1995. The purpose of this paper is to examine how the changes, and the effects of the changes on employees, were reported in the annual reports.

The impact of technology on the supply of sport broadcasting

The demand for sport content by broadcasting organizations has undergone a major redefinition in the last 15-20 years. Television has become predominantly a private good, subject to deregulation and technological revolution. The traditional approach to presenting sport content predominantly live and exclusive through one distribution channel has evolved considerably into one represented now by a multi-faceted, multi-organizational approach. This paper will introduce the two markets of sport and broadcasting through the supply network of broadcasting rights and sports programming, and how this network is affected by the emerging broadcasting technology that is appearing in the digital environment. The era of digital broadcasting creates a significant alteration to the supply of broadcasting content developed by professional sport leagues, competitions and events. A number of emerging distribution system components linked to the digital environment can be identified and associated with sport broadcasting, all of which are having a profound impact on the way sport is being presented now and into the future. The various distribution components are introduced and examined in terms of their impact on the professional sport broadcasting markets. Each distribution component is addressed from the perspective of the regulatory, marketing, and economic impacts on channel management that apply.

Structural adjustment and change in the Australian life insurance industry post demutualization

Deregulation of financial markets has been an important platform for government policy in recent times. It has been a catalyst in the expansion of financial sector. The experience of Australian life insurers during this period represents an interesting case study into the impact of regulatory transition. The lifting of restrictions changed the institutional environment within which life insurers operated. In doing so it precipitated changes in strategies and organizational structures of these financial intermediaries. An information cost framework is used to analyse the consequences of deregulation and its implications for the Australian life insurance industry in emerging global financial markets.

Efficiency measurement of Australian dairy farms: national and regional performance

In this paper we use Data Envelopment Analysis (DEA) to estimate technical efficiency for a sample of 1742 Australian dairy farms. Bearing in mind data limitations we find that average technical efficiency is 59 per cent, but there are significant regional differences. These results reflect differences in State level milk marketing arrangements in place before dairy deregulation in July 2000 providing an ex post explanation for the changing composition of dairy farms in Australia. We also examine two important technical aspects of DEA implementation. First, how changes in model input specification alter the relative performance of farms. Second, we employ a simple bootstrap procedure to show how changes in sample size affects estimates of technical efficiency. These results have simple but important implications for the use of DEA as an industry-benchmarking tool.