EconPapers    
Economics at your fingertips  
 

Profitability efficiency, marketability efficiency and technology gaps in Taiwan’s banking industry: meta-frontier network data envelopment analysis

Chuang-Min Chao, Ming-Miin Yu, Nan-Hsing Hsiung and Li-Hsueh Chen

Applied Economics, 2018, vol. 50, issue 3, 233-250

Abstract: The aim of this article is to measure the profitability efficiency (PE) and marketability efficiency (ME) of non-homogenous Taiwanese banks after the adoption of International Financial Reporting Standards by using the convex meta-frontier data envelopment analysis model. The model is applied to simultaneously estimate PE and ME of the banks in financial holding companies (FHCs) and the banks not in FHCs. The meta-inefficiencies in individual processes are further decomposed into group inefficiencies and technology gap inefficiencies to explore the sources of inefficiency. The empirical results indicate that the banks in FHCs can reduce more costs than the banks not in FHCs, whereas the banks not in FHCs can create greater market value than the banks in FHCs. For the banks joining and not in FHCs, technology gap inefficiency is the main source of inefficiencies in both profitability and marketability processes.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2017.1316827 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:50:y:2018:i:3:p:233-250

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2018-11-10
Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:233-250