Are the best African banks really the best? A Malmquist data envelopment analysis

2016 ◽  
Vol 24 (4) ◽  
pp. 588-610 ◽  
Author(s):  
Tesfatsion Sahlu Desta
Keyword(s):  
South Africa ◽  
Data Envelopment Analysis ◽  
Total Factor Productivity ◽  
Commercial Banks ◽  
Productivity Index ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Global Finance ◽  
Content Type ◽  
Efficiency And Productivity

Purpose This paper aims to examine whether the African commercial banks selected as the best African banks by Global Finance Magazine really are the best. Design/methodology/approach Panel data envelopment analysis (DEA) was used, as well as the Malmquist total factor productivity index, to distinguish productive banks from unproductive banks. Nineteen commercial banks were selected from the 30 best African banks as identified by the Global Finance Magazine. Findings Of the 19 banks, five were found to be unproductive. Bank productivity was attributed mainly to technological change, and different methods marked different results, for example, the regional winner bank (Standard Bank of South Africa) selected by Global Finance Magazine ranked ninth in this study, whereas the Bank Windhoek Limited, Namibia, ranked first. Practical implications The study confirms the applicability of DEA for the banking industry. The model shows variability among the banks’ efficiency and productivity and provides different results to the Global Finance Magazine’s best bank selection. For example, the Standard Bank of South Africa, which is selected as the regional winner, is now ranked ninth under the DEA Malmquist’s total factor productivity. Originality/value The study shows that the DEA model can be applied not only for analysing the firm’s efficiency but also for objective rating, ranking and selecting best banks.

Measurement of financial efficiency and productivity of Turkish Public Universities by using non-parametric methods

2019 ◽  
Vol 11 (4) ◽  
pp. 876-896
Author(s):  
Aslı Günay ◽  
Murat Ali Dulupçu
Keyword(s):  
Total Factor Productivity ◽  
Public Universities ◽  
Productivity Index ◽  
Productivity Change ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Financial Efficiency ◽  
Data Set ◽  
Content Type ◽  
Efficiency And Productivity

Purpose The purpose of this paper is to measure the financial efficiency and productivity of 23 public universities founded in 1992 in Turkey over the period between 2004 and 2013. The results obtained will provide managerial information and act as a guide to public universities’ administrations, in using their resources more effectively. Design/methodology/approach Data envelopment analysis is applied to assess the relative financial efficiency of these universities, while Malmquist total factor productivity index is used to measure the total factor productivity change concerning financial inputs of the universities. Findings The number of financially efficient universities and the number of universities showing an increase in their productivity according to their financial inputs change annually and both of them display a rough trend over the years. A decrease of about 5 percent in the financial productivity of the universities is observed which stems from a technological recession. Therefore, public universities in Turkey are not able to develop effective policies to diversify, increase and use their financial resources. Originality/value When the lack of studies within the literature measuring the financial efficiency of higher education institutions is taken into account, this study can fill a gap in this area. The analyses conducted here distinguish from existing studies on this subject with regards to the extent and diversity of financial data set and the measurement of both efficiency and productivity change of universities considering financial inputs concurrently.

scholarly journals Islamic Banks vs. Conventional Banks in Bangladesh: A Comparative Study Based on its Efficiency in Operation

2020 ◽  
Vol 4 (1) ◽  
pp. 29-37 ◽  
Author(s):  
Faisal Ahmad
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Progress ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Productivity Index ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Factor Productivity ◽  
Conventional Banks ◽  
Better Than

The main purpose of this study is to make a comparison between Islamic banks (IBs) and Conventional banks (CBs) in Bangladesh based on its efficiency in operation. The Data Envelopment Analysis (DEA) is employed under CRS and VRS approach, which allows for the decomposition of efficiency into technical, allocated and cost efficiency. The study also measures changes in productivity over the time as a result of technical progress by employing the Malmquist Total Factor Productivity Index. The results explain that the technical efficiency of IBs is better than that of CBs, but allocated and cost efficiency (CE) of IBs are higher than CBs. In Bangladesh there are 62 commercial banks included 8 Islamic Banks that are regulated by Bangladesh Bank (BB).  

Effects of cross-border acquisitions on efficiency and productivity of acquired companies: evidence from cement industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Slađana Savović ◽  
Predrag Mimović
Keyword(s):  
Data Envelopment Analysis ◽  
Transitional Economies ◽  
Cement Industry ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Content Type ◽  
Cross Border ◽  
Efficiency And Productivity ◽  
Practical Implications

PurposeThe purpose of this paper is to explore the effects of cross-border acquisitions on the efficiency and productivity of acquired companies in the cement industry in the context of a transitional economy.Design/methodology/approachThe Data Envelopment Analysis (DEA) and Malmquist Productivity Index were used to assess the efficiency and productivity of the acquired companies over the period 2000–2018. DEA and Malmquist index are combined with bootstrapping to perform succinct statistical inferences for determining the accuracy of results. The study assesses partial efficiency and productivity of three inputs: material, capital and labour, as well as the total factor efficiency and productivity of the acquired companies in the short and long term after the acquisitions.FindingsThe research results suggest that efficiency of material, efficiency of labour and the total factor efficiency of the acquired companies are higher after the acquisitions than before, while efficiency of capital is lower. In addition, the results show that the acquisitions had a positive impact on total factor productivity of the acquired companies.Practical implicationsThe results of this study have practical implications for managers, especially for policy-makers and industry analysts in deciding whether to encourage or discourage cross-border acquisitions in transitional economies.Originality/valueThe study contributes to a better understanding of the impact of cross-border acquisitions on efficiency and productivity of acquired companies in the manufacturing industry. Research in transitional economies related to subject matter is limited, and this study is the first empirical investigation of the effect of cross-border acquisitions on the efficiency and productivity in the cement industry in Serbia by applying the Data Envelopment Analysis.

Financial efficiency of commercial banks listed in Egyptian stock exchange using data envelopment analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Abdelrahman Kamel ◽  
Mohamed El-Sayed Mousa ◽  
Randa Mohamed Hamdy
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Financial Efficiency ◽  
Content Type ◽  
Egyptian Stock Exchange

PurposeThis study used data envelopment analysis (DEA) models to measure financial efficiency of twelve commercial banks listed in the Egyptian stock exchange (CBLSE), along with evaluating changes to the financial efficiency during the period 2017–2019.Design/methodology/approachThe study used BCC-I, cross-efficiency, super-efficiency models, and Malmquist productivity index (MPI) to assess financial efficiency of the examined banks. The available data from both inputs and outputs were analyzed using R. studio V.I.3. 1056 software.FindingsOut of twelve banks examined, only four banks were efficient under BCC-I model over different years of the study period; however, only one bank (CIB) appeared to be the most efficient compared to other peers in the study sample. Moreover, MPI results revealed decreased financial efficiency during the study period, due to the decreased technological innovation, except for HDB. Tobit regression results confirmed that total assets and total equity are significant factors impacted financial efficiency of CBLSE.Practical implicationsThis study sheds light on the importance of evaluating financial efficiency of CBLSE to all stakeholders, to pinpoint weaknesses in banks' performance, and for evaluating financial policies and investment decisions.Originality/valueSeveral studies sought to implement different models of DEA to assess banking performance in different regions of the world, but very few studies examined financial efficiency of banks. To the best of authors’ knowledge, this study is one of those few that addressed financial efficiency of banks in Egypt.

scholarly journals ANALISIS TINGKAT EFISIENSI SEKTOR PARIWISATA DI JAWA TENGAH TAHUN 2017 DAN 2019

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Yennie Glorya Panjaitan ◽  
Edy Yusuf Agung Gunanto
Keyword(s):  
Data Envelopment Analysis ◽  
Total Factor Productivity ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Productivity Change ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Efficiency Change

Sektor pariwisata sebagai salah satu sektor yang diandalkan bagi penerimaan daerah maka pemerintah Provinsi Jawa Tengah dituntut untuk dapat menggali dan mengelola potensi wisata yang dimiliki. Penelitian ini bertujuan untuk menganilisis tingkat efisiensi dan produktivitas pada sektor pariwisata di Jawa Tengah antara tahun 2017 dan 2019 dengan sampel 35 Kabupaten/Kota. Analisis dilakukan dengan menggunakan konsep efisiensi yang didasarkan pada teori produksi, pengukuran nilai efisiensi dan produktivitas diperoleh menggunakan metode analisis Data Envelopment Analysis (DEA) dan Malmquist Productivity Index (MPI). Asumsi yang digunakan adalah variable return to scale (VRTS) dan model orientasi output (output oriented). Dengan variable input objek wisata, restoran dan rumah makan, biro perjalanan wisata dan jumlah hotel bintang serta melati. Variabel output dalam penelitian ini adalah wisatawan dan pendapatan sektor pariwisata. Hasil akhir penelitian menunjukkan bahwa terdapat 16 Kabupaten/Kota (45,8%) di tahun 2017, 18 Kabupaten/Kota (51,4%) di tahun 2019 yang mencapai efisiensi teknis penuh. Total Factor productivity change mengindikasikan bahwa 22 Kabupaten/Kota (62,8%) mendekati frontier baik pada frontier produksi maupun frontier efisiensi dan dari scale efficiency change mengindikasikan bahwa terdapat 17 Kabupaten/Kota (48,57%) mengalami perbaikan efisiensi teknis selama periode 2017 ke 2019.

scholarly journals Determinants of Total Factor Productivity of Libyan banks 2004 – 2010

2016 ◽  
Vol 6 (3) ◽  
pp. 690-702
Author(s):  
Khalad M. S. Alrafadi
Keyword(s):  
Data Envelopment Analysis ◽  
Regression Model ◽  
Total Factor Productivity ◽  
Least Square ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Ordinary Least Square

The paper examines the determinants of Total Factor Productivity (TFP) of Libyan banks by employing Data Envelopment Analysis (DEA) based Malmquist Productivity Index (MPI) and Ordinary Least Square (OLS) estimation regression model for the period 2004 – 2010. For estimate TFP and determinants in this study we used DEAP 2.1 software and we used Evies 7 software for estimating determinants. The results showed that our variables which used in this study are not significant related to TFP.

scholarly journals Change In The Composition Of Bank Income And Its Effect On The Changes In The Efficiency Of Bank Regions

2012 ◽  
Vol 11 (6) ◽  
pp. 631
Author(s):  
Gerhardus Van der Westhuizen
Keyword(s):  
Data Envelopment Analysis ◽  
Total Factor Productivity ◽  
Productivity Index ◽  
Productivity Change ◽  
Traditional Model ◽  
Data Envelopment ◽  
Factor Productivity ◽  
The Past ◽  
Index Decomposition ◽  
Traditional Function

Over the past five years, banks experienced a change in the composition of bank income earning more in service fees compared to interest income. The effect of this change on the efficiency of bank regions is investigated. Data Envelopment Analysis (DEA) and the TFP (Total Factor Productivity) index decomposition methodology were used to estimate efficiency and to decompose productivity change into its different components. Two models were specified one for the traditional function of a bank and one for the non-traditional function of a bank. It appears that some bank regions experienced improvement in efficiency under the non-traditional model, meaning that the change in the composition of bank income can result in improved efficiency.

scholarly journals KOMPARASI EFISIENSI & PRODUKTIVITAS PERUSAHAAN ASURANSI JIWA KONVENSIONAL DAN SYARIAH DI INDONESIA PADA TAHUN 2014 – 2017, DENGAN PENDEKATAN DEA & INDEKS MALMQUIST

2020 ◽  
Vol 6 (9) ◽  
pp. 1877
Author(s):  
Oky Suryoaji ◽  
Eko Fajar Cahyono
Keyword(s):  
Data Envelopment Analysis ◽  
Total Factor Productivity ◽  
Malmquist Index ◽  
Productivity Change ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Constant Return

Tujuan penelitian ini adalah untuk mengetahui tingkat efisiensi dan produktivitas perusahaan asuransi jiwa antara konvensional dan syariah (baik Unit Usaha Syariah maupun Full Fledge) periode 2014 – 2017. Penelitian ini menggunakan pendekatan kuantitatif dengan metode non parametrik DEA (Data Envelopment Analysis) yang dilandaskan dengan asumsi CRS (Constant Return to Scale) dan VRS (Variable Return to Scale) dan Indeks Malmquist asumsi TFPC (Total Factor Productivity Change) dengan diolah menggunakan aplikasi DEAP Versi 2.1. Variabel yang digunakan meliputi Total Aset, Beban, Klaim, Premi/Dana Tabrru’, dan Pendapatan. Subjek yang digunakan dalam penelitian ini sebanyak 29 perusahaan asuransi jiwa syariah yang terdiri 10 perusahaan asuransi jiwa syariah dan 19 perusahaan asuransi jiwa konvensional. Hasil penelitian menunjukkan bahwa rata-rata perusahaan asuransi jiwa konvensional dan syariah belum mencapai efisien (CRS) dan rata-rata TFPC perusahaan asuransi jiwa konvensional sudah mencapai produktivitas sementara syariah belum mencapai produktivitas.Keywords:Asuransi Jiwa Syariah, Efisiensi, Produktivitas, Data Envelopment Analysis (DEA), Constant Return to Scale (CRS), Variable Return to Scale (VRS), Malmquist Index (MI), Total Factor Productivity Change (TFPC)

scholarly journals DINAMIKA TOTAL FACTOR PRODUCTIVITY INDUSTRI BESAR DAN SEDANG INDONESIA

2014 ◽  
Vol 16 (3) ◽  
pp. 277-308
Author(s):  
Ndari Surjaningsih ◽  
Bayu Panji Permono
Keyword(s):  
Data Envelopment Analysis ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Manufacturing Sector ◽  
Jel Classification ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Catching Up ◽  
Using Data

This paper calculates and decomposes the Total Factor Productivity (TFP) for large and medium scale industry in Indonesia covering the period of 2000-2009. By using Data Envelopment Analysis (DEA)  method, the result shows there is a shift of the supporting factors on the growth of TFP on manufacturing sector within the 2 (two) sample period. In the period of 2000-2004, efficiency change becomes the main contributor on the growth of TFP. Whereas in the period of 2005-2009, technical change becomes the main supporting factor of TFP,however it goes along with the growth of negative efficiency change or the decline of the company’s catching-up effect ability to adapt with the more advance technology. The grouping of the sample across subsectors, technical change and also efficiency change shows the declining amount of manufacture industry with superior productivity. Furthermore, the number of low and weakening catching-up industry is increasing.  Keywords: Indonesian manufacturing, total factor productivity, technical change, efficiency change, economic scale change, Data Envelopment Analysis JEL Classification: L6, M11

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