The Study of Profitability and Marketability Efficiency of the Listed Bank in the Greater China Area－A three stage DEA Analysis

• Main Authors: Chun-Hsuan Hsieh, 謝君炫
• Other Authors: Shyu, Jonchi
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/94667995915677498814

碩士 === 國立臺灣科技大學 === 財務金融研究所 === 97 === This paper analyzes the profit efficiency and marketablility on bank performance for a sample of list banks operating in Taiwan, Hong Kong, and China between 2004 and 2007.We employ Lawrance M. Seiford & Joe Zhu(1999) two-stage production process including profitability and marketability performance using a non-parametric frontier method — data envelopment analysis (DEA) first, and then we add three-stage data envelopment analysis (DEA) to measure performance efficiency of each bank in Greater China area. The empirical results show as follow: In the two areas of Taiwan and Hong Kong, the Technical Efficiency score is 0.737 for the first stage; in second stage, we adjust the model with some environment variables, and the Technical Efficiency score is decreased to 0.219. The rank order in the first stage is Taiwan, then Hong Kong; however, in the third stage, Hong Kong, then Taiwan. Analyzing the Marketability, we find that the average efficiency score for the banks in each area is 0.382; the rank order is Hong Kong, then Taiwan. Comparing the Scale Efficiency, we find that both the banks in Taiwan and Hong Kong are getting increased, so the banks in the two areas should enlarge their scale to get profit. Besides, we classified the two areas’ banks as banking holding company and non-bank holding company to compare the efficiency. We find that in Taiwan, whether in the fist stage or in the third stage, the profitability for the non-bank holding companies is better than the bank holding companies; the marketability is the other way round. In Hong Kong, the performance of bank holding companies and of non-banking holding companies in profitability or marketability shows no difference. In Greater China area, the Technical Efficiency score is 0.693 in the first stag; in second stage, we adjust the model with some environment variables, and the Technical Efficiency score is decreased to 0.256. The rank order in the first stage is China, Taiwan, then Hong Kong; however, in the second stage, China, Hong Kong, then Taiwan. Analyzing the Marketability, we see that the average efficiency score for the banks in each area is 0.409, and the rank order is Hong Kong, China, then Taiwan. Comparing the Scale Efficiency, we find that both the banks in Taiwan and Hong Kong are getting increased, so the banks in the two areas should enlarge the banks’ scale to get profit. However, in China, the scales of most banks are getting decreased, which shows that the banks in China should reduce the banks’ scale to lower the cost.