To investigate the impact of ownership
structure and concentration on bank efficiency in the case of Taiwan, we consider the non-linear relationship between ownership and
efficiency, using the panel
threshold model technique to test whether a non-linear relationship is
significant. Empirical findings indicate that ownership structure is significantly impacted
by bank efficiency; the results show that managerial ownership negatively relates to efficiency and ownership concentration, and state-ownership has no regard
for bank efficiency. The results show that the threshold effect is significant, implying a
significant non-linear relationship between board ownership and efficiency.
This supports the form of non-linear relation as found in previous literature.
JEL Classification: G21, G34.
Ownership structure, Concentration, Panel threshold