The Relationship between Capital Structure and the Efficiency in both State and Private Banks by the Use of DEA Technique

Mohammadreza Abbaszadeh, Reza Abbaszadeh Amiri (), Javad Azimi, Naser Yazdanifar and Mohsen Rezayee Shurokey
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Mohammadreza Abbaszadeh: University of Mashhad
Reza Abbaszadeh Amiri: Bank Saderat of Khorasan Razavi Mashhad
Javad Azimi: Islamic Azad University
Naser Yazdanifar: Islamic Azad University
Mohsen Rezayee Shurokey: Islamic Azad University

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2013, vol. 3, issue 4, 51-60

Abstract: The aim of this research is to study the relationship between capital structure and the efficiency in both state and private banks by the use of DEA (Data Envelopment Analysis) technique. The research hypotheses are based on the existence of the relationship between capital structure and the banks efficiency. The sample research includes 18 banks during the years 2006-2010. The input and output variables for each bank are calculated from the financial statements, by the use of intermediate approach in evaluating banks, and they are used as input and outputs of DEA techniques. Data for examining the research hypotheses are two approaches of ((OLS and panel data)), the research results show that for private banks, the results of two approaches have conformity with each other, and there are no interbank effects, but in public banks, there are interbank effects and there is a meaningful relationship between the efficiency and the debt ratio in the first hypothesis and lack of meaningful relationship in the 2nd and 3rd hypotheses, and also there is meaningful relationship between the two variables of efficiency and debt ratio with several using control variables. In those, in addition to efficiency and the debt ratio from the control variables such as profitability; tangible assets, intangibility of assets, and bank size (logarithm of assets) have been used too.

Keywords: Capital structure; Efficiency; DEA technique; Panel data (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:3:y:2013:i:4:p:51-60

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