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Measurement of the performance of an investment bank using the operational competitiveness rating procedure

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  • Parkan, Celik
  • Wu, Ming-Lu

Abstract

The Hong Kong branch of an international investment bank hired additional staff in anticipation of increased business activity that eventually did not quite materialize and management was concerned about the effect of that decision on the bank's overall performance profile. This paper summarizes a study we carried out to address two related questions using only the available data at the time: (1) what is the direction of the overall performance trend and (2) how serious has the impact of the incremental costs of hiring additional staff been on the Bank's overall performance? The discussion in this paper focuses on the construction of the bank's performance profile using a new performance measurement method called operational competitiveness rating analysis (OCRA). The paper also includes comparisons of OCRA and data envelopment analysis (DEA) ratings and profit scores to show the validity support among the three approaches as well as underscore their differences.

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  • Parkan, Celik & Wu, Ming-Lu, 1999. "Measurement of the performance of an investment bank using the operational competitiveness rating procedure," Omega, Elsevier, vol. 27(2), pages 201-217, April.
    • Handle: RePEc:eee:jomega:v:27:y:1999:i:2:p:201-217
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    2. Ruzhdi Jashari, 2017. "Protection of Personal Data Requirement of Modern Times for the Functioning of the Security, Individual Freedoms and the Rule of Law," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 2, May Augus.
    3. Fethi, Meryem Duygun & Pasiouras, Fotios, 2010. "Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey," European Journal of Operational Research, Elsevier, vol. 204(2), pages 189-198, July.
    4. Parkan, Celik & Wu, Ming-Lu, 1999. "Measuring the performance of operations of Hong Kong's manufacturing industries," European Journal of Operational Research, Elsevier, vol. 118(2), pages 235-258, October.
    5. Li, Sheng-Tun & Chou, Wei-Chien, 2014. "Power planning in ICT infrastructure: A multi-criteria operational performance evaluation approach," Omega, Elsevier, vol. 49(C), pages 134-148.
    6. Parkan, Celik, 2007. "Verifying OCRA's economic sense: Response to Agrell and West (2001)," International Journal of Production Economics, Elsevier, vol. 107(1), pages 274-278, May.
    7. Wang, Shouhong, 2006. "Comments on operational competitiveness rating analysis (OCRA)," European Journal of Operational Research, Elsevier, vol. 169(1), pages 329-331, February.
    8. Chang, Yu-Hern & Yeh, Chung-Hsing, 2001. "Evaluating airline competitiveness using multiattribute decision making," Omega, Elsevier, vol. 29(5), pages 405-415, October.
    9. C Parkan, 2004. "Gauging and comparing the performances of dissimilar entities," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(1), pages 82-89, January.
    10. Shouhong Wang & Hai Wang, 2005. "The mystification of operational competitiveness rating analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 535-538.
    11. Ahmed Mohammed & Morteza Yazdani & Amar Oukil & Ernesto D. R. Santibanez Gonzalez, 2021. "A Hybrid MCDM Approach towards Resilient Sourcing," Sustainability, MDPI, vol. 13(5), pages 1-30, March.
    12. Ender Coskun & Abdulvahap Ozcan, 2016. "Finansal Sikinti Surecinde Sirketlerin Etkinlik Duzeylerinin Belirlenmesi," EconWorld Working Papers 16001, WERI-World Economic Research Institute, revised Apr 2016.
    13. Parkan, Celik, 2006. "On OCRA: Response to comments by Wang (2004)," European Journal of Operational Research, Elsevier, vol. 169(1), pages 332-337, February.
    14. Wei-Kang Wang & Wen-Min Lu & Yu-Han Wang, 2013. "The relationship between bank performance and intellectual capital in East Asia," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 1041-1062, February.
    15. S Wang & H Wang, 2006. "Quarantine OCRA spam," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(6), pages 748-750, June.
    16. Paradi, Joseph C. & Zhu, Haiyan, 2013. "A survey on bank branch efficiency and performance research with data envelopment analysis," Omega, Elsevier, vol. 41(1), pages 61-79.
    17. Vadim V. Krivorotov & Alexei V. Kalina & S.E. Erypalov, 2022. "Modern Assessment and Forecast Prospects of the Competitiveness of the World's Largest Manufacturers of Copper Products," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 21(4), pages 734-774.

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