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How do Greek banking institutions react after significant events?--A DEA approach

  • Siriopoulos, Costas
  • Tziogkidis, Panagiotis

The efficiency of Greek commercial banks is considered through the period 1995-2003 using the data envelopment analysis technique. Two approaches are used to measure efficiency: one using financial ratios as outputs only and the other viewing banks as credit generation and transaction institutions. The empirical results are used to examine the reaction of banking institutions after significant events such as M&As, privatizations and the crisis of the Athens Stock Exchange in 1999. In most cases performance deteriorates for the next 1 to 2 years, while increases thereafter, forming specific patterns of efficiency. In the last part we introduce an index to measure the management's efficiency through a process of change. The results suggest that the Greek banking sector operated efficiently on average during the destabilization periods. The contribution of the article is that it comprises the first study which examines empirically the performance behavior of banking institutions within the scope of change management theory.

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Article provided by Elsevier in its journal Omega.

Volume (Year): 38 (2010)
Issue (Month): 5 (October)
Pages: 294-308

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Handle: RePEc:eee:jomega:v:38:y:2010:i:5:p:294-308
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