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Efficiency comparison of operational and profitability: a case of Hong Kong commercial banks
Efficiency comparison of operational and profitability: a case of Hong Kong commercial banks
- Source :
- Journal of Social Sciences. Oct, 2008, Vol. 4 Issue 4, p280, 8 p.
- Publication Year :
- 2008
-
Abstract
- Problem Statement: Traditional DEA models deal with measurements of relative efficiency of DMUs regarding multiple-inputs vs. multiple-outputs. One of the drawbacks of these models is the neglect of intermediate products or linking activities. The objectives of this study were: (i) This research was shown how to use DEA by two stages, with outputs from the first stage becoming inputs in the second stage. (ii) Comparative analysis of efficiency of bank manageable in Hong Kong. Approach: The research conducts a comparative analysis of efficiency of bank manageable in Hong Kong using a two-stage model, which evaluates their Operational Efficiency (OE) and Profitability Efficiency (PE). The study period covered 2004-2006 and used two-stage Data Envelopment Analysis (DEA). Results: Large-sized banks are generally more efficient than small-sized ones in the operational efficiency; while small efficient banks are easily to become benchmarks, large efficient banks are deemed as competitive niche players. This means that the large banks have better competitive power than those of smaller ones. Conclusion: Using this model, we can evaluate divisional efficiencies along with the overall efficiency of decision making units (DMUs). Key words: Date envelopment analysis, stock exchange, Over The Counter (OTC), two-stage, operational efficiency, profitability efficiency<br />INTRODUCTION The Hong Kong had a long tradition of being a laissez-faire economy and has committed to maintaining the free market stance since its sovereignty was returned to China in [...]
- Subjects :
- Stock-exchange
Commercial banks
Bank mergers
Bank management
Social sciences
Subjects
Details
- Language :
- English
- ISSN :
- 15493652
- Volume :
- 4
- Issue :
- 4
- Database :
- Gale General OneFile
- Journal :
- Journal of Social Sciences
- Publication Type :
- Periodical
- Accession number :
- edsgcl.208210021