Handling losses in translog profit models

126 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

Financial openness, risk and bank efficiency: Cross-country evidence (2016, methodology): “It should be noted that to account for the negative minimum profit of banks, since the dependent variable requires the natural logarithmic transformation, we follow the approach suggested by Bos and Koetter (2011) by incorporating an additional independent variable, the negative profit indicator (NP”
Regional growth and finance in Europe : Is there a quality effect of bank efficiency? (2009, background): “However, Bos and Koetter (2009) suggest an alternative negative indicator approach, which is less likely to be biased.”
The relationship between banking market competition and risk-taking: Do size and capitalization matter? (2012, methodology): “In order to solve this problem we follow Bos and Koetter (2009) who employs an additional independent variable - the Negative Performance Indicator (NPI) - that takes the value of 1 when Z-score ≥ 0 and it is equal to the absolute value of Z-score, when Z-score < 0.”