Operating Efficiency and Optimal Scale of Financial Service Industry--Data Envelopment Analysis(DEA)

• Main Authors: Yi-Juan Chen, 陳宜娟
• Other Authors: Cheng-Yih Hong
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/04669758149133138657

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 97 === It is a crucial topic to investigate the performance of financial holding companies with a diversified business as expected. The present study employs the data envelopment analysis (DEA) to demonstrate the operational efficiency and optimal scale under cross-industry alliance between the banking and security sectors of the domestic financial holding companies. In the first place, the CCR model is applied to obtain the technical efficiency (TE), followed by calculating the pure technical efficiency (PTE) using the BCC model. We finally obtain the optimal scale in terms of returns to scale (SE), efficiency reference and analysis and analysis of variance. Empirically, we show that the average technical efficiency of all financial holding companies is 0.672, which implies that 32.8% of the resource fails to show efficiency and results in the serious waste of resource and an insufficient output. Furthermore, the present study also finds that the key factor giving rise to a technical inefficiency of 53.41% for financial holding companies is due to a purely technical inefficiency. The scale inefficiency, however, is accounted for 46.59%. In addition to these, under the influence of the Financial Tsunami in 2008, the average efficiency of these 13 financial holding companies is 0.619, which is 5.33% lower than that during the period of the previous season. It should be concluded, from what has been said above, that the operating efficiency of the financial holding companies after cross-industry alliance between the banking sector and security sector, does not meet the synergy of integration as expected previously as facing the financial crisis.