The operating efficiency of financial holding and nonfinancial holding banks—Epsilou-based measure metafrontier data envelopment analysis model

Ying Li, Yung ho Chiu, Hongyi Cen, Tai Yu Lin

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

Previous bank efficiency studies assumed that the same efficient frontier system exists in different types of banks, but the conventional radial data envelopment analysis (DEA) model slacks are not counted in efficiency scores, and nonradial DEA models do not consider radial features. This paper develops an Epsilou-based measure meta-DEA approach for measuring the efficiencies and technology gaps of different bank types. The results are as the follows: The average efficiency and technology gaps of nonfinancial holding banks are better than those of financial holding banks. The nonfinancial holding banks are more efficient than financial holding banks in investment and other income.

Original languageEnglish
Pages (from-to)488-499
Number of pages12
JournalManagerial and Decision Economics
Volume40
Issue number5
DOIs
Publication statusPublished - 2019 Jul

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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