A Study of the Relationship of Nonperforming Loan, Managerial Ownership and Performance in Banking Industry

• Main Authors: Mei-Fang Tsai, 蔡美芳
• Other Authors: Andy Chien
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/96481265181149280681

碩士 === 國立高雄第一科技大學 === 金融營運系碩士班 === 89 === There are a lot of studies for the issue of bank performance in Taiwan. Most of them are concentrated in the way to evaluate the performance. Beside measuring bank performance in this research, an advanced study concentrates in what the relationship of nonperforming loan, managerial ownership and performance, and how the reciprocal effects for each other. The study uses data envelopment analysis model to estimate bank performance. In order to estimate performance, this study adopts intermediation approach to choose inputs and outputs. Then this research applies simultaneous equations to analyze the relationship of nonperforming loan, managerial ownership and performance, finally to provide the suggestions. The study samples 34 listing banks, and period covers from 1995 to 1999. The main findings of this study can be summarized as following： 1.The average bank relative cost efficiency falls between 81.56% and 98.65%. 2.The ratio of nonperforming loan and cost efficiency have statistically negatively significant effect on the managerial ownership. The size of assets has statistically positively significant effect on the managerial ownership. 3.The age of bank has statistically positively significant effect on the ratio of nonperforming loan. 4.The ratio of nonperforming loan and numbers of branch have statistically negatively significant effect on the cost efficiency. The size of assets has statistically positively significant effect on cost efficiency.