Evaluation of bank performance on Taiwan stock market using data envelopment analysis

• Main Authors: WU, MENG-CHEN, 吳孟貞
• Other Authors: WONG, JUI-TSUNG
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/52935304041526677852

碩士 === 實踐大學 === 企業管理學系碩士在職專班 === 104 === Abstract This research evaluates banking companies’ operational performance on Taiwan stock market. In recent years, Taiwanese financial industry faced challenges of economic downturns, as well as major financial evolutions. Performance evaluation helps to identify poor performance business, as well as operational efficiency of banks. Its result is also applicable as basis for companies to devise future business strategy. Therefore, it’s important for companies to have an objective and suitable method of performance evaluation. However, performance evaluation for banks is a highly complex analysis with many factors needs to be considered. Most studies adopt multi-criteria decision-making (MCDM) to conduct performance evaluation. This study adopts data envelopment analysis (DEA) to evaluate banking companies’ performance in Taiwanese open market. 12 banks are listed as research subjects in this study. In quantitative analysis, CCR and BCC models are used to evaluate decision making unit’s (DMU) technical efficiency, pure technical efficiency, and scale efficiency. This analysis helps to identify reasons of banks’ low performance, such as banks need larger scale, or need to improve technologies. Moreover, this study uses Malmquist productive index to further investigate bank performance changes in recent years. Results in this part helps to understand if a bank’s operational strategy is suitable. Results from this study are expected to be research basis for future bank related study.