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

Quey Jen Yeh

Research output: Contribution to journalArticlepeer-review

204 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 Aug

All Science Journal Classification (ASJC) codes

  • Statistics, Probability and Uncertainty
  • Modelling and Simulation
  • Strategy and Management
  • Management Science and Operations Research

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