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The privatisation experience in banking and insurance in Australia
conference contribution
posted on 2009-01-01, 00:00 authored by Margaret McKenzie, Monica KeneleyMonica KeneleyThe role of ownership in performance of financial institutions is under-examined yet remains a topical issue. Whilst ownership changes in the banking sector have been evaluated in several studies, the link with other sectors has not been a focus of in depth analysis. A controlled comparison of performance between privatising banks and insurance firms in Australia is undertaken via a ‘meso’ approach of pairing privatising with comparator private institutions across the event period. Performance is evaluated using commercial CAMEL indicators and applying Wilcoxon rank tests (Otchere and Chan 2003) which provide statistically robust findings in the small annual data samples available around the privatisation event. Performance of privatising and private institutions is found to be quite similar before and after the event. For the privatising banks, some indicator medians improved to commercial levels (CBA) or were mostly unchanged (Colonial). By contrast one of the privatising insurance institutions (Suncorp) was found to outperform the private insurance comparator while there was little difference for the other (GIO).
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Event
Australasian Finance and Banking Conference (22nd : 2009 : Sydney, New South Wales)Publisher
University New South WalesLocation
Sydney, New South WalesPlace of publication
Sydney, N.S.W.Start date
2009-12-16End date
2009-12-18Language
engPublication classification
E1 Full written paper - refereed; E Conference publicationTitle of proceedings
AFBC 2009 : Proceedings of the Australasian Finance and Banking Conference 2009Usage metrics
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