IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v27y1999i2p201-217.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(98)00041-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

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

    References listed on IDEAS

    as
    1. Parkan, Celik, 1991. "The calculation of operational performance ratings," International Journal of Production Economics, Elsevier, vol. 24(1-2), pages 165-173, November.
    2. Parkan, Celik, 1996. "Measuring the performance of hotel operations," Socio-Economic Planning Sciences, Elsevier, vol. 30(4), pages 257-292, December.
    3. Sudit, Ephraim F., 1995. "Productivity measurement in industrial operations," European Journal of Operational Research, Elsevier, vol. 85(3), pages 435-453, September.
    4. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    5. Thompson, Russell G. & Langemeier, Larry N. & Lee, Chih-Tah & Lee, Euntaik & Thrall, Robert M., 1990. "The role of multiplier bounds in efficiency analysis with application to Kansas farming," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 93-108.
    6. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    7. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Parkan, Celik, 2006. "On OCRA: Response to comments by Wang (2004)," European Journal of Operational Research, Elsevier, vol. 169(1), pages 332-337, February.
    2. 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.
    3. 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.
    4. Ülengin, Füsun & Kabak, Özgür & Önsel, Sule & Ülengin, Burç & Aktas, Emel, 2010. "A problem-structuring model for analyzing transportation-environment relationships," European Journal of Operational Research, Elsevier, vol. 200(3), pages 844-859, February.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Wang, Shouhong, 2006. "Comments on operational competitiveness rating analysis (OCRA)," European Journal of Operational Research, Elsevier, vol. 169(1), pages 329-331, February.
    11. Chang, Yu-Hern & Yeh, Chung-Hsing, 2001. "Evaluating airline competitiveness using multiattribute decision making," Omega, Elsevier, vol. 29(5), pages 405-415, October.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. Ender Coskun & Abdulvahap Ozcan, 2016. "Finansal Sikinti Surecinde Sirketlerin Etkinlik Duzeylerinin Belirlenmesi," EconWorld Working Papers 16001, WERI-World Economic Research Institute, revised Apr 2016.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Pedraja & Javier Salinas & Peter Smith, 1994. "La restricción de las ponderaciones en el análisis envolvente de datos: una fórmula para mejorar la evaluación de la eficiencia," Investigaciones Economicas, Fundación SEPI, vol. 18(2), pages 365-380, May.
    2. Francisco Pedraja-Chaparro & Javier Salinas-Jimenez & Peter Smith, 1997. "On the Role of Weight Restrictions in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(2), pages 215-230, May.
    3. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 175-248, December.
    4. Nikolaos Oikonomou & Yannis Tountas & Argiris Mariolis & Kyriakos Souliotis & Kostas Athanasakis & John Kyriopoulos, 2016. "Measuring the efficiency of the Greek rural primary health care using a restricted DEA model; the case of southern and western Greece," Health Care Management Science, Springer, vol. 19(4), pages 313-325, December.
    5. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    6. António J. R. Santos & Sérgio P. Santos & Carla A. F. Amado & Efigénio L. Rebelo & Júlio C. Mendes, 2020. "Labor inspectorates’ efficiency and effectiveness assessment as a learning path to improve work-related accident prevention," Annals of Operations Research, Springer, vol. 288(2), pages 609-651, May.
    7. 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.
    8. Franz R. Hahn, 2007. "Determinants of Bank Efficiency in Europe. Assessing Bank Performance Across Markets," WIFO Studies, WIFO, number 31499.
    9. Zanella, Andreia & Camanho, Ana S. & Dias, Teresa G., 2015. "Undesirable outputs and weighting schemes in composite indicators based on data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 245(2), pages 517-530.
    10. Hu, Jin-Li & Wang, Shih-Chuan & Yeh, Fang-Yu, 2006. "Total-factor water efficiency of regions in China," Resources Policy, Elsevier, vol. 31(4), pages 217-230, December.
    11. Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
    12. Badunenko, Oleg & Galeotti, Marzio & Hunt, Lester C., 2021. "Better to grow or better to improve? Measuring environmental efficiency in OECD countries with a Stochastic Environmental Kuznets Frontier," FEEM Working Papers 316226, Fondazione Eni Enrico Mattei (FEEM).
    13. Baris Yilmaz & Mehmet Yurdusev & Nilgun Harmancioglu, 2009. "The Assessment of Irrigation Efficiency in Buyuk Menderes Basin," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(6), pages 1081-1095, April.
    14. Botti, Laurent & Briec, Walter & Cliquet, Gérard, 2009. "Plural forms versus franchise and company-owned systems: A DEA approach of hotel chain performance," Omega, Elsevier, vol. 37(3), pages 566-578, June.
    15. Martin Eling, 2006. "Performance measurement of hedge funds using data envelopment analysis," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 20(4), pages 442-471, December.
    16. Philippe K. Widmer & Peter Zweifel, 2008. "Public Good Provision in a Federalist Country: Tiebout Competition, Fiscal Equalization, and Incentives for Efficiency in Switzerland," SOI - Working Papers 0804, Socioeconomic Institute - University of Zurich, revised Dec 2010.
    17. Ülengin, Füsun & Kabak, Özgür & Önsel, Sule & Aktas, Emel & Parker, Barnett R., 2011. "The competitiveness of nations and implications for human development," Socio-Economic Planning Sciences, Elsevier, vol. 45(1), pages 16-27, March.
    18. Finn Førsund, 2013. "Weight restrictions in DEA: misplaced emphasis?," Journal of Productivity Analysis, Springer, vol. 40(3), pages 271-283, December.
    19. Zhimin Huang & Waiman Cheung & Huiwen Wang, 2006. "Cone dominance and efficiency in DEA," Annals of Operations Research, Springer, vol. 145(1), pages 89-103, July.
    20. John C. Topuz & Ali F. Darrat & Roger M. Shelor, 2005. "Technical, Allocative and Scale Efficiencies of REITs: An Empirical Inquiry," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(9‐10), pages 1961-1994, November.

    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:eee:jomega:v:27:y:1999:i:2:p:201-217. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    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.