A Study of the Performance on the Privatization of State-owned Banks

• Main Authors: Yu-Fen Lai, 賴郁芬
• Other Authors: Min-Chun Yu
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/62124498989399614939

碩士 === 國立高雄應用科技大學 === 企業管理系 === 97 === In Taiwan, state-owned banks have been recognized as financial institutions that can stabilize national currency and boost local economy. During the past decades, fierce competition from the private-owned banks has forced the state-owned banks to look for ways that can improve operational efficiency. Privatization of state-owned banks becomes an inevitable move for Taiwan’s government to enhance banks’ competence and operational performance. However, the privatization policy has not been examined and benefit not guaranteed. In this study, nine previously state-owned banks that have been privatized in are selected and studied in order to explore the effects of privatization and factors that affect operational efficiency. Data envelopment analysis (DEA) is utilized to compute annual efficiency for each bank by incorporating inputs such as number of employees, sales expenditure and total assets and outputs that include amount of investment and net value. Furthermore, Malmquist productivity index and Tobit regression are employed to calculate management efficiency during 2000 to 2005 and examine the impact of affecting factors on the efficiency. The major findings of the study are as follows. 1. The majority of state-owned banks enjoy better technology efficiency after privatization. 2. Most of the technology inefficiency is incurred due to the inefficiency of scale. The returns to scale have a tendency of increment. 3. Kaohsiung Bank has been the productivity of a continuous progress, the average productivity performance of the best banks is Taipei Bank. 4. Among the factors that affect banks’ efficiency, number of branches and return on asset ratio (ROA) has a positive relationship with total technology efficiency, while amount of deposits and government’s ownership have a negative impact on the efficiency.