| Summary: | 碩士 === 銘傳大學 === 金融研究所 === 90 === In recent years, because of banking deregulation and economic depression, the competition among banks becomes more and more intense. On the one hand the competitive pressure can push every bank to operate more efficiently, on the other hand this pressure induces banks to be engaged in risk transactions. Mester(1996) suggests that unless quality and risk are incorporated in the underlying industry cost or profit functions, the bank’s inefficiency will be easily misestimated. Based on the above concept, this study uses data envelopment analysis, stochastic cost frontier approach and distribution-free approach and considers the impact of risk and assets quality factors on banks’ cost to evaluate X-efficiency for a sample of 22 Taiwan banks between 1993 and 2000, and investigates that if risk and assets quality factors are considered big-sized banks tends to be more inefficient.
The empirical results show that after considering risk and assets quality factors, stochastic cost frontier approach and distribution-free approach yield higher X-efficiency, data envelopment analysis yields lower X-efficiency. Before and after considering risk and assets quality factors, the empirical results of data envelopment analysis, stochastic cost frontier approach and distribution-free approach show that the X-efficiency of big-sized and old-established banks are not better than small-sized and newly-established bank. The results also suggest that there is very good consistency between stochastic cost frontier approach and distribution-free approach.
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