Non-oriented slack-based decompositions of profit change with an application to Taiwanese banking

Omega

Volumn 40, Issue 5, 2012, Pages 550-561

  Juo, Jia Ching ^a   Fu, Tsu Tan ^b   Yu, Ming Miin ^c  

^a LUNGHWA UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Taiwan)

^b SOOCHOW UNIVERSITY   (Taiwan)

^c NATIONAL TAIWAN OCEAN UNIVERSITY   (Taiwan)

Author keywords

Data envelopment analysis (DEA); Decomposition; Profit change; Slacks; Slacks based measure (SBM)

Indexed keywords

COSTS; PROFITABILITY;

DATA ENVELOPMENT ANALYSE; NON-ORIENTED; OPERATING EFFICIENCY; OPERATING PROFIT; PRICE EFFECT; PRODUCT MIX; PROFIT CHANGE; SLACKS; SLACKS-BASED MEASURE; SLACKS-BASED MEASURE MODELS;

DATA ENVELOPMENT ANALYSIS;

EID: 82355186531     PISSN: 03050483     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.omega.2011.11.002     Document Type: Article

References (51)

1. Tone K. A slacks-based measure of efficiency in data envelopment analysis. European Journal of Operational Research 2001, 130:498-509.
2. Grifell-Tatjé E., Lovell C.A.K. Profits and productivity. Management Science 1999, 45:1177-1193.
3. Fethi M.D., Pasiouras F. Assessing bank efficiency and performance with operational research and artificial intelligence techniques: a survey. European Journal of Operational Research 2010, 204:189-198.
4. Charnes A., Cooper W.W., Rhodes E. Measuring the efficiency of decision making units. European Journal of Operational Research 1978, 2:429-444.
5. Banker R.D., Charnes A., Cooper W.W. Models for estimating technical and scale efficiencies in DEA. European Journal of Operational Research 1984, 30:1078-1092.
6. Charnes A., Cooper W.W., Golany B., Seiford L.M., Stutz J. Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions. Journal of Econometrics 1985, 30:91-107.
7. Russell R.R. Measures of technical efficiency. Journal of Economic Theory 1985, 35:109-126.
8. Aida K., Cooper W.W., Pastor J.T., Sueyoshi T. Evaluating water supply services in Japan with RAM: a range-adjusted measure of inefficiency. Omega 1998, 26:207-232.
9. Vassiloglou M., Giokas D. A study of the relative efficiency of bank branches: an application of data envelopment analysis. Journal of the Operational Research Society 1990, 41:591-597.
10. Berger A.N., Mester L.J. Inside the black box: what explains differences in the efficiencies of financial institutions?. Journal of Banking and Finance 1997, 21:895-947.
11. Parkan C., Lam K., Hang G. Operational competitiveness analysis on software development. Journal of the Operational Research Society 1997, 48:892-905.
12. Chen T.Y. A comparison of chance-constrained DEA and stochastic frontier analysis: bank efficiency in Taiwan. Journal of the Operational Research Society 2002, 53:492-500.
13. Manandhar R., Tang J.C.S. The evaluation of bank branch performance using data envelopment analysis. Journal of High Technology Management Research 2002, 13:1-17.
14. Mercan M., Reisman A., Yalalan R., Emel A.B. The effect scale and mode of ownership on the financial performance of the Turkish banking sector: results of a DEA-based analysis. Socio-Economic Planning Sciences 2003, 37:185-203.
15. Sathye M. Efficiency of banks in a developing economy: the case of India. European Journal of Operational Research 2003, 148:662-671.
16. Mukherjee A., Nath P., Pa M. Resource, service quality and performance triad: a framework for measuring efficiency of banking services. Journal of the Operational Research Society 2003, 54:723-735.
17. Wang W.K., Huang H.C., Lai M.C. Measuring the relative efficiency of commercial banks: a comparative study on different ownership modes in China. Journal of American Academy of Business, Cambridge 2005, 7:219-223.
18. Berger A.N. International comparisons of banking efficiency. Financial Markets, Institutions and Instruments 2007, 16:119-144.
19. Drake L., Hall M.J.B., Simper R. The impact of macroeconomic and regulatory factors on bank efficiency: a non-parametric analysis of Hong Kong's banking system. Journal of Banking and Finance 2006, 30:1443-1466.
20. Fried H.O., Schmidt S.S., Yaisawarng S. Incorporating the operating environment into a nonparametric measure of technical efficiency. Journal of Productivity Analysis 1999, 12:249-267.
21. Drake L., Hall M.J.B., Simper R. Bank modeling methodologies: a comparative non-parametric analysis of efficiency in the Japanese banking sector. Journal of International Financial Markets, Institutions and Money 2009, 19:1-15.
22. Avkiran N.K. Opening the black box of efficiency analysis: an illustration with UAE banks. Omega 2009, 37:930-941.
23. Sahoo B.K., Tone K. Decomposing capacity utilization in data envelopment analysis: an application to banks in India. European Journal of Operational Research 2009, 195:575-594.
24. Mahlberg B., Sahoo B.K. Radial and non-radial decompositions of Luenberger productivity indicator with an illustrative application. International Journal of Production Economics 2011, 131:721-726.
25. Maudos J., Pastor J.M. Cost and profit efficiency in the Spanish banking sector (1985-1996): a non-parametric approach. Applied Financial Economics 2003, 13:1-12.
26. Färe R., Grosskopf S., Weber W.L. The effect of risk-based capital requirements on profit efficiency in banking. Applied Economics 2004, 36:1731-1743.
27. Das A., Ghosh S. Financial deregulation and profit efficiency: a nonparametric analysis of Indian banks. Journal of Economics and Business 2009, 61:509-528.
28. Koutsomanoli-Filippaki A., Margaritis D., Staikouras C. Profit efficiency under a directional technology distance function approach. Managerial Finance 2009, 35:276-296.
29. Banker R.D., Datar S., Kaplan R. Productivity measurement and management accounting. Journal of Accounting, Auditing and Finance 1989, 4:528-554.
30. Sahoo B.K., Tone K. Radial and non-radial decompositions of profit change: with an application to Indian banking. European Journal of Operational Research 2009, 196:1130-1146.
31. Tortosa-Ausina E., Armero C., Conesa D., Grifell-Tatjé E. Bootstrapping profit change: an application to Spanish banks. Computers and Operations Research 2010, 2010. 10.1016/j.cor.2010.04.017.
32. Shephard R. Theory of cost and production functions 1970, Princeton University Press, Princeton.
33. Färe R., Lovell C.A.K. Measuring the technical efficiency of production. Journal of Economic Theory 1978, 19:150-162.
34. Färe R., Grosskopf S. Directional distance functions and slacks-based measures of efficiency. European Journal of Operational Research 2010, 200:320-322.
35. Fukuyama H., Weber W.L. A directional slacks-based measure of technical inefficiency. Socio-Economic Planning Sciences 2009, 43:274-287.
36. Simar L., Wilson P.W. Estimating and bootstrapping Malmquist indices. European Journal of Operational Research 1999, 115:459-471.
37. Färe R, Grosskopf S. Comment: profits and productivity. Working paper; 2005. Department of Economics, Oregon State University, U.S.A.
38. Chiu Y.H., Jan C., Shen D.B., Wang P.C. Efficiency and capital adequacy in Taiwan banking: BCC and super-DEA estimation. The Service Industries Journal 2008, 28:479-496.
39. Chiu Y.H., Chen Y.C. The analysis of Taiwanese bank efficiency: incorporating both external environment risk and internal risk. Economic Modelling 2009, 26:456-463.
40. Hu W.C., Lai M.C., Huang H.C. Rating the relative efficiency of financial holding companies in an emerging economy: a multiple DEA approach. Expert Systems with Applications 2009, 36:5592-5599.
41. Chambers R.G., Pope R.D. Aggregate productivity measures. American Journal of Agricultural Economics 1996, 78:1360-1365.
42. Chambers R.G. Exact nonradial input, output, and productivity measurement. Economic Theory 2002, 20:751-765.
43. Fiordelisi F., Molyneux P. Total factor productivity and shareholder returns in banking. Omega 2010, 38:241-253.
44. Barros C.P., Managi S., Matousek R. The technical efficiency of the Japanese banks: non-radial directional performance measurement with undesirable output. Omega 2012, 40:1-8.
45. Fries S., Taci A. Cost efficiency of banks in transition: evidence from 289 banks in 15 post-communist countries. Journal of Banking and Finance 2005, 29:55-81.
46. Beccalli E., Casu B., Girardone C. Efficiency and stock performance in European banking. Journal of Business Finance and Accounting 2006, 33:245-262.
47. Charnes A., Cooper W.W. Programming with linear fractional functionals. Naval Research Logistics Quarterly 1962, 15:333-334.
48. Berger A.N., Humphrey D.B. Efficiency of financial institutions: international survey and directions for future research. European Journal of Operational Research 1997, 98:175-212.
49. Alchian A.A. Some economics of property rights. II Politico 1965, 30:816-829.
50. De Alessi L. The economics of property rights: a review of the evidence. Research in Law and Economics: A Research Annual 1980, 2:1-47. [Jai Press].
51. Chang T.C., Chiu Y.H. Affecting factors on risk-adjusted efficiency in Taiwan's banking industry. Contemporary Economic Policy 2006, 24:634-648.