Performance Evaluation of Listed Banks in Taiwan:An Application of Balanced Scorecard Analysis

• Main Authors: Guan-Da Chen, 陳冠達
• Other Authors: Maria Kuo
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/76425963259508257021

碩士 === 樹德科技大學 === 金融保險研究所 === 92 === This study examines performance evaluation of listed banks in Taiwan, and adopts the Balance Scorecard (BSC) to design the index of performance evaluation. Besides the financial index, the study further includes non-financial index such as employee quality, internal procedure and service quality, in order to broaden and deepen the study. Moreover, this study aims to provide an appropriate performance evaluation model for the management of financial institutes. The study have three objectives: (1) to examine the influence of financial and non-financial index on bank performance with a strategic performance evaluation model taking the BSC concept; (2) to investigate the correlation of four perspectives of BSC (finance, customer, learning & growth, and internal business process) and bank performance; and (3) to analyze the predictability of all financial and non-financial index on bank performance, in order to develop an appropriate BSC model which can apply to the banking industry. Besides using the BSC for performance evaluation, this study designs four virtual variables of: (1) whether the sample is in the period of Asia Crisis; (2) whether the sample is in the period of financial holding company; (3) whether the sample is one of new banks; and (4) whether the sample is of large-scale bank. This study further examines that the impact of these four virtual variables on bank performance (i.e., returns on asset, ROA). The period of data analysis is from Jun 1996 to Sep 2003, and samples include 29 listed banks in Taiwan. A regression model is adopted to test and verify the performance evaluation. From the result, we find that ROA is positively correlated with education level of employees, and is negatively correlated with rate of non-performing loan, both with statistical significance. Furthermore, new bank tends to perform better and so does large-scale bank. From the regression analysis, the age of employee has a negative regression coefficient on ROA, which means the lower age of employee, the higher of bank performance. The rate of non-performing loan also has a negative regression coefficient on ROA, which means the lower rate of non-performing loan, the higher of bank performance. At last, the scale of bank has a positive regression coefficient on ROA, which means the larger scale of bank, the higher of bank performance.