:: year 10, Issue 31 (Spring 2017) ::
JMBR 2017, 10(31): 123-140 Back to browse issues page
Investigating Incentive Evaluation Model for a Bank with Panel Data and Variance Decomposition Approach
MOHAMMAD VALIPOUR PASHA 1, HADI HEIDARI1, HOSSEIN BASTANZAD1, AZAM AHMADIAN1
1- Monetary and Banking Research Institute
Abstract:   (1713 Views)

 

An incentive model is quantitatively constructed to evaluate bank’s branches efficiency via compensating periodic bonus. A panel data approach is applied for a bank over 9 months in 1393. The null hypothesis is experimentally defined based on the average bonus equality in different branches. Results indicate that the bonus average, deviation and the other moments have equally-disincentivly caused a contraction in the efficiency and future profitability.  Meanwhile, the bank was obviously failed to translate the efficiency and risk management requirements into the bonus compensation. The incomplete-efficiency scenario is also observed in the four different bonus compensation mechanisms so incentive indicators have not been influenced by the financial and performance variables. 

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Type of Study: Case Study | Subject: Financial Institutions and Services (G2)
Received: 2016/07/11 | Accepted: 2017/07/12 | Published: 2018/01/29


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year 10, Issue 31 (Spring 2017) Back to browse issues page