IDEAS home Printed from https://ideas.repec.org/a/hur/ijaraf/v3y2013i4p51-60.html
   My bibliography  Save this article

The Relationship between Capital Structure and the Efficiency in both State and Private Banks by the Use of DEA Technique

Author

Listed:
  • Mohammadreza Abbaszadeh

    (University of Mashhad)

  • Reza Abbaszadeh Amiri

    () (Bank Saderat of Khorasan Razavi Mashhad)

  • Javad Azimi

    (Islamic Azad University)

  • Naser Yazdanifar

    (Islamic Azad University)

  • Mohsen Rezayee Shurokey

    (Islamic Azad University)

Abstract

The aim of this research is to study the relationship between capital structure and the efficiency in both state and private banks by the use of DEA (Data Envelopment Analysis) technique. The research hypotheses are based on the existence of the relationship between capital structure and the banks efficiency. The sample research includes 18 banks during the years 2006-2010. The input and output variables for each bank are calculated from the financial statements, by the use of intermediate approach in evaluating banks, and they are used as input and outputs of DEA techniques. Data for examining the research hypotheses are two approaches of ((OLS and panel data)), the research results show that for private banks, the results of two approaches have conformity with each other, and there are no interbank effects, but in public banks, there are interbank effects and there is a meaningful relationship between the efficiency and the debt ratio in the first hypothesis and lack of meaningful relationship in the 2nd and 3rd hypotheses, and also there is meaningful relationship between the two variables of efficiency and debt ratio with several using control variables. In those, in addition to efficiency and the debt ratio from the control variables such as profitability; tangible assets, intangibility of assets, and bank size (logarithm of assets) have been used too.

Suggested Citation

  • Mohammadreza Abbaszadeh & Reza Abbaszadeh Amiri & Javad Azimi & Naser Yazdanifar & Mohsen Rezayee Shurokey, 2013. "The Relationship between Capital Structure and the Efficiency in both State and Private Banks by the Use of DEA Technique," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(4), pages 51-60, October.
  • Handle: RePEc:hur:ijaraf:v:3:y:2013:i:4:p:51-60
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Article_07_The_Relationship_between_Capital_Structure.pdf
    Download Restriction: no

    File URL: http://hrmars.com/hrmars_papers/Article_07_The_Relationship_between_Capital_Structure.pdf
    Download Restriction: no

    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:hur:ijaraf:v:3:y:2013:i:4:p:51-60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hassan Danial Aslam). General contact details of provider: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.