Department / Course Research Organization of Social Science (BKC)
Title / Position Visiting Senior Researcher
Language English
Publication Date 2021
Type Research paper (scientific journal)
Peer Review Yes
Title Impact of learning through credit and value creation on the efficiency of Japanese commercial banks.
Contribution Type Joint Work
Journal Financial Innovation
Journal Type Another Country
Publisher Springer
Volume, Issue, Page 7(57)
Total page number
Responsible for Design, data analysis, results and discussion of the findings
Authorship Lead author , Last author , Corresponding author
Author and coauthor Aduba, Joseph Jr. and Izawa, Hiroshi
Details This study investigates the learning curve of commercial banks regarding the efficiency of credit and value creation. However, current empirical methods for accessing the learning curve in organizations are not suitable for use in financial institutions. Considering bank-specific characteristics, we introduce a dynamic learning curve using a cost function adjusted to capture learning-by-doing in banks. Using the model, we test several hypotheses on the impact of bank intermediary experience (learning) on the efficiency of credit and value creation in Japanese commercial banks. The findings show that bank intermediary learning significantly improves the cost efficiency gain in the gross value created, total credit created, and investment. However, bank intermediary experience has no significant effect on the efficiency of the economic value created for all the banks analyzed. These findings have practical implications for evaluating cost dynamics in bank credit and value creation, risk management, lending to the real sector, and shareholder value creation.