A Two-Stage DEA Model to Evaluate the Performance of Iberian Banks

Victor Moutinho, José Vale, Rui Bertuzi, Ana Maria Bandeira and José Palhares
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Victor Moutinho: NECE-Research Center in Business Sciences and Management and Economics Department, 6201-001 Covilhã, Portugal
José Vale: CEOS.PP—Centre for Organisational and Social Studies of P. Porto, Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Porto, Portugal
Rui Bertuzi: CEOS.PP—Centre for Organisational and Social Studies of P. Porto, Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Porto, Portugal
Ana Maria Bandeira: CEOS.PP—Centre for Organisational and Social Studies of P. Porto, Porto Accounting and Business School, Polytechnic Institute of Porto, 4465-004 Porto, Portugal
José Palhares: DEGEIT—Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, 3810-193 Aveiro, Portugal

Economies, 2021, vol. 9, issue 3, 1-22

Abstract: This paper’s goal is twofold: it aims to assess the performance of 58 Iberian banks and explore the relationship between such performance and the banks’ Intellectual Capital (IC) efficiency during a post-crisis period. As long as the authors are aware, there is a gap in the literature in exploring the relationship between banks’ global performance and IC efficiency. First, the Data Envelopment Analysis model was adopted to measure the efficiency of Iberian banks and rank them according to their performance. Data were collected digitally, specifically by using the Bankscope database provided by Bureau van Dijk. Results show that by improving their resources management practices, banks can significantly increase their efficiency. Then, fractional regressions were used to infer the relationship between IC’s efficiency and the scores obtained in the first stage. Results suggest that Iberian banks’ global performance is mainly determined by their human capital efficiency. Finally, this study stresses the importance of IC measurement to support more efficient decision-making by bank managers.

Keywords: Intellectual Capital; VAIC; banking efficiency; two-stage efficiency; data envelopment analysis; fractional regressions (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:9:y:2021:i:3:p:115-:d:615771

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