Schumpeterian competition and efficiency among commercial banks in China: based on the trademark perspective

Abstract

As competition in the banking industry has intensified in recent years, commercial banks have begun to use trademarks to distinguish products and services provided by their competitors. However, the impact of trademark registration on the performance of commercial banks is still unclear. Based on this, this paper uses the unbalanced panel data of 168 commercial banks from 2006 to 2019 and uses the SFA method to measure the cost efficiency and profit efficiency of commercial banks. The intensity of trademark registration is used to express the innovation intensity of new products or services, and the multiple regression analysis method is used to empirically test the impact of trademarks on the operating efficiency of commercial banks. The empirical findings show that the cost efficiency and profit efficiency of commercial banks with trademark registration activities are significantly higher than those of banks without trademark registration activities. The trademark strength and profit efficiency of the lagging period are significantly positively correlated, and the trademark strength is more important for state-owned banks and joint-stock banks. The profit efficiency improvement effect is remarkable. Joint-stock commercial banks can occupy more market shares by continuously launching new products and services in the competitive market, thereby improving their profit efficiency.