Performance Evaluation of Online Stockbrokers –An Approach Based on the Two-Stage DEA

• Main Authors: Yu-Chiao Yang, 楊雨樵
• Other Authors: Chien-Ta Ho
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/63738971052350633786

碩士 === 中興大學 === 電子商務研究所 === 95 === Online business has been developing for 30 years, throughout the evolution of the Internet. The Internet is not only changing the business models of companies in different industries around the world, but it is also changing shopping habits. This kind of innovative change has also had a huge effect on Taiwan’s financial institutions. In 1997, Da-Shin Securities was the first company to provide online trading in Taiwan. After that, more and more traditional stockbrokers devoted themselves to developing online business and more and more investors started placing their orders online. The concept of the DuPont model and the method of data envelopment analysis are used in this research. According to the concept of the DuPont model, the operation process of online stockbrokers is disaggregated into operating efficiency and operating effectiveness. A two-stage Data Envelopment Analysis is used to find out the relative operating efficiency score and operating effectiveness score of 28 online stockbrokers in Taiwan from 2003 to 2005. The results show that there are seven companies that are CCR-efficient in their operating efficiency; five companies that are CCR-efficient in their operating effectiveness and only two companies that are CCR-efficient both in operating efficiency and operating effectiveness. Finally, the author found that there is no apparent linear correlation between operating efficiency and effectiveness.