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Cost Efficiency Affects Sustainable Operations

Author

Listed:
  • Chun-Ying Chen

    (School of Accounting and Finance, Xiamen University Tan Kah Kee College, Zhangzhou, Taiwan)

  • Chun-Hung Chen

    (Department of Finance, National Yunlin University of Science and Technology, Yunlin, Taiwan,)

  • Ai-Chi Hsu

    (Department of Finance, National Yunlin University of Science and Technology, Yunlin, Taiwan)

Abstract

This study adopted a cost efficiency model to assess the operational efficiency of the banking industry in Taiwan. Empirical results show that the Bank of Taiwan, Taiwan Cooperative Bank, and First Commercial Bank have higher operational efficiency than the other banks. Banks with relatively low operational efficiency include Taipei Star Bank, the Enterprise Bank of Hualien, which was merged into the CTBC Bank, and the ABN AMRO-acquired Taitung Business Bank, which together with ABN AMRO's other business in Taiwan, was later acquired by the Australia and New Zealand Banking Group (ANZ) and renamed ANZ Bank (Taiwan). These findings show that banks with low operational efficiency are unable to maintain sustainable operations.

Suggested Citation

  • Chun-Ying Chen & Chun-Hung Chen & Ai-Chi Hsu, 2018. "Cost Efficiency Affects Sustainable Operations," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 90-92.
    • Handle: RePEc:eco:journ1:2018-01-12
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Operational efficiency; cost efficiency; data envelopment analysis;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • G1 - Financial Economics - - General Financial Markets
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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