IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v14y2007i11p821-827.html
   My bibliography  Save this article

Measuring efficiency of domestic banks in Taiwan: application of data envelopment analysis and Malmquist index

Author

Listed:
  • Yi-Hsing Lin
  • George J. Y. Hsu
  • Ching-Kai Hsiao

Abstract

The purpose of this article is to investigate relative efficiency of management and variation of managerial efficiency among 37 domestic banks in Taiwan. The relative efficiency of management is analysed through Data Envelopment Analysis (DEA) to estimate the competitiveness of each bank and managerial efficiency is to show the efficiency variation of each bank through Malmquist index. This article also links those two types of efficiency by constructing a matrix of relative efficiency and managerial efficiency defining of eight different categories of banks. The empirical results show that all 37 banks possess an average relative efficiency value of 0.591, with a SD of 0.228. And there are 6 banks with an efficiency value of 1. From the results estimated by Malmquist model, it indicates there are 20 banks with an efficiency variation greater than 1. This means that managerial efficiency of those 20 banks has been improving. However, there are 17 banks with an efficiency variation less than 1. This means that managerial efficiency of those 17 banks has been declining.

Suggested Citation

  • Yi-Hsing Lin & George J. Y. Hsu & Ching-Kai Hsiao, 2007. "Measuring efficiency of domestic banks in Taiwan: application of data envelopment analysis and Malmquist index," Applied Economics Letters, Taylor & Francis Journals, vol. 14(11), pages 821-827.
    • Handle: RePEc:taf:apeclt:v:14:y:2007:i:11:p:821-827
    DOI: 10.1080/13504850600605960
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504850600605960&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504850600605960?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kao, Chiang & Liu, Shiang-Tai, 2014. "Measuring performance improvement of Taiwanese commercial banks under uncertainty," European Journal of Operational Research, Elsevier, vol. 235(3), pages 755-764.
    2. Feyyaz Cengiz Dikmen, 2016. "Productivity Change: An Empirical Study on Turkish State Universities," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 4(1), pages 27-34, June.
    3. Kao, Chiang & Liu, Shiang-Tai, 2016. "A parallel production frontiers approach for intertemporal efficiency analysis: The case of Taiwanese commercial banks," European Journal of Operational Research, Elsevier, vol. 255(2), pages 411-421.
    4. Wen-Chung Guo & Chih-Ching Yang, 2013. "Are bank mergers procyclical or countercyclical? Theory and evidence from Taiwan," Applied Financial Economics, Taylor & Francis Journals, vol. 23(1), pages 1-14, January.
    5. Ikram Ullah Khan & Sadaqat Ali & Habib Nawaz Khan, 2018. "Market Concentration, Risk-taking, and Efficiency of Commercial Banks in Pakistan: An Application of the Two-Stage Double Bootstrap DEA," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(2), pages 65-96, June.
    6. Hashem Omrani & Arash Alizadeh & Ali Emrouznejad & Zeynab Oveysi, 2023. "A novel best‐worst‐method two‐stage data envelopment analysis model considering decision makers' preferences: An application in bank branches evaluation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 3593-3610, October.
    7. Chiu, Yung-ho & Luo, Zhengying & Chen, Yu-Chuan & Wang, Zebin & Tsai, Min-Pei, 2013. "A comparison of operating performance management between Taiwan banks and foreign banks based on the Meta-Hybrid DEA model," Economic Modelling, Elsevier, vol. 33(C), pages 433-439.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:14:y:2007:i:11:p:821-827. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.