Effects of Ownership Structure on Operation and Profitability Efficiencies of Bank Industry in Taiwan: An Application of Network DEA Model

• Main Authors: Su, Yang-Ze, 蘇揚澤
• Other Authors: Hu, Jin-Li
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/w85p8p

碩士 === 國立交通大學 === 經營管理研究所 === 106 === This study computes efficiency of 37 commercial banks in Taiwan. The data of the Taiwan Economic Journal (TEJ), Financial Statistic Monthly R.O.C and the annual reports of each bank from 2012 to 2016 are collected. This paper applies a non-oriented slack-based network data envelopment analysis (DEA) model by Tone and Tsutsui (2009) to compute the operational and profitability efficiency of Taiwan’s banks from 2012 to 2016. Efficiency scores are monotonically transformed by the square root of the inverse sine of a trigonometric function before the linear regression analysis. The effects of government shareholdings and foreign shareholdings on network efficiencies are then estimated. The empirical results show that governmental shareholdings has no significant effect on the overall efficiency while the ratio of foreign shareholding significantly first increases and then decreases the network efficiencies. Combination of foreign and domestic shareholdings is the best ownership structure to maximize the network efficiencies.