An Empirical Study on the Performance Measurement of Taiwan’s Financial Holding Corporation

• Main Authors: Guang-Ao Li, 李光傲
• Other Authors: Yu-Cheng Chen
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/16537638502076691369

碩士 === 國立中興大學 === 財務金融系所 === 95 === After financial reform during 1990s, the performance comparison between members vs. non-member banks of financial holding corporations has become a hot issue in Taiwan. This study uses Data Envelopment Analysis (DEA) to measure the efficiency of the sample banks and uses CAMELS ratings standards to test their performance for the period from 2003 to 2005. Empirical results are as follows: First, the DEA analysis indicates that the operation performances of member banks of financial holding corporations are more efficient than that of non-member banks. In general, the efficiency of all banks in Taiwan becomes better for the period from 2003 to 2005. Second, the member banks of financial holding corporations outperformed than those of the non-member by CAMELS rating standards. Non-members banks’ performance has greater variation than that of the member banks of financial holding corporations. Finally, this study also used regression model to evaluate relevant performance drivers which affect DEA efficiency in banking industries. The result showed that variables of CAMELS rating standards can explain bank’s DEA efficiency. Among these relevant drivers, non-performing loan (NPL) ratio has a negative effect on efficiency and loan-deposit ratio, pre-tax ROA and liquidity reserves ratio have positive effects on the operational efficiency.