The application of data envelopment analysis in conjunction with financial ratios for bank performance evaluation

Research output: Contribution to journalArticle

154 Citations (Scopus)

Abstract

While financial ratios are currently the method most often used to evaluate a bank’s performance, there is no clear-cut rationale which would allow one to acquire a composite score on the overall financial soundness of a bank. This paper demonstrates the application of DEA (Data Envelopment Analysis) in conjunction with financial ratios to help bank regulators in Taiwan not only to distinguish the efficient banks from the inefficient ones but also to gain insight into various financial dimensions that somehow link to the bank’s financial operational decisions.

Original languageEnglish
Pages (from-to)980-988
Number of pages9
JournalJournal of the Operational Research Society
Volume47
Issue number8
DOIs
Publication statusPublished - 1996 Jan 1

Fingerprint

Data envelopment analysis
Composite materials
Financial ratios
Performance evaluation
Bank performance

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Strategy and Management
  • Management Science and Operations Research
  • Marketing

Cite this

@article{e1874da7a8f3472188efcc8d3efb1f53,
title = "The application of data envelopment analysis in conjunction with financial ratios for bank performance evaluation",
abstract = "While financial ratios are currently the method most often used to evaluate a bank’s performance, there is no clear-cut rationale which would allow one to acquire a composite score on the overall financial soundness of a bank. This paper demonstrates the application of DEA (Data Envelopment Analysis) in conjunction with financial ratios to help bank regulators in Taiwan not only to distinguish the efficient banks from the inefficient ones but also to gain insight into various financial dimensions that somehow link to the bank’s financial operational decisions.",
author = "Quey-Jen Yeh",
year = "1996",
month = "1",
day = "1",
doi = "10.1057/jors.1996.125",
language = "English",
volume = "47",
pages = "980--988",
journal = "Journal of the Operational Research Society",
issn = "0160-5682",
publisher = "Palgrave Macmillan Ltd.",
number = "8",

}

TY - JOUR

T1 - The application of data envelopment analysis in conjunction with financial ratios for bank performance evaluation

AU - Yeh, Quey-Jen

PY - 1996/1/1

Y1 - 1996/1/1

N2 - While financial ratios are currently the method most often used to evaluate a bank’s performance, there is no clear-cut rationale which would allow one to acquire a composite score on the overall financial soundness of a bank. This paper demonstrates the application of DEA (Data Envelopment Analysis) in conjunction with financial ratios to help bank regulators in Taiwan not only to distinguish the efficient banks from the inefficient ones but also to gain insight into various financial dimensions that somehow link to the bank’s financial operational decisions.

AB - While financial ratios are currently the method most often used to evaluate a bank’s performance, there is no clear-cut rationale which would allow one to acquire a composite score on the overall financial soundness of a bank. This paper demonstrates the application of DEA (Data Envelopment Analysis) in conjunction with financial ratios to help bank regulators in Taiwan not only to distinguish the efficient banks from the inefficient ones but also to gain insight into various financial dimensions that somehow link to the bank’s financial operational decisions.

UR - http://www.scopus.com/inward/record.url?scp=0030216722&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0030216722&partnerID=8YFLogxK

U2 - 10.1057/jors.1996.125

DO - 10.1057/jors.1996.125

M3 - Article

VL - 47

SP - 980

EP - 988

JO - Journal of the Operational Research Society

JF - Journal of the Operational Research Society

SN - 0160-5682

IS - 8

ER -