scholarly journals The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework

2019 ◽  
Vol IV (IV) ◽  
pp. 600-611
Author(s):  
Farhat Ullah Khan ◽  
Aman Ullah Khan ◽  
Inayat Ullah
Keyword(s):  
Data Envelopment Analysis ◽  
Regression Model ◽  
Commercial Banks ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Model Framework ◽  
Specific Factors ◽  
The Impact ◽  
Tobit Regression Model ◽  
Bank Specific Factors

This study aims to measure the effects of bank-specific factors on the efficiency of Pakistan's twenty-seven (27) commercial banks. Efficiency was computed by input-oriented data envelopment analysis approach under CRS (constant return to scale) and VRS (variable return to scale) assumptions. The results revealed that overall inefficiency in commercial banks was to tune of 10 percent and was caused by both managerial incompetence and uneconomical bank's size. However, the uneconomic scale size remained the dominant source of inefficiency at individual banks level, and most of the banks exhibited a decreasing return to scale (DRS) behaviour. Furthermore, efficiency scores were regressed by bank-specific factors using the Tobit regression model. Among the bank-specific factors, Profitability, liquidity, bank size had a significant and positive impact, while market share and Asset quality had a negative and substantial effect on all the efficiency parameters.

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

Operating Efficiency Analysis of Energy Industries in Taiwan

2013 ◽  
Vol 869-870 ◽  
pp. 612-620 ◽  
Author(s):  
Nattanin Ueasin ◽  
Anupong Wongchai
Keyword(s):  
Regression Model ◽  
Stock Exchange ◽  
Efficiency Score ◽  
Operating Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Factors Affecting ◽  
Taiwan Stock Exchange ◽  
Energy Companies ◽  
Tobit Regression Model

The energy business has played an important role in an economic growth of Taiwan because the market share is in the high value that can make a significant contribution towards regional and local employment. However, Taiwan is lack of energy resources, making the country highly relies on an import for more than 98 percent of its all energy. At present, a top priority of the countrys policy is to develop clean, sustainable, independent, and efficient energy in order to eliminate the vulnerability from external disruption. Therefore, this research aims to assess the operating efficiency and to analyze factors affecting the efficiency scores of the registered energy companies in the Taiwan Stock Exchange (TWSE) recorded during 2003-2012. The super-efficiency data envelopment analysis (SE-DEA) was initially applied to reveal the additional efficiency scores, followed by the Tobit regression model used to analyze what factors determine the efficiency scores. The empirical results showed that seven DMUs performed efficiently, ranking from 7.29 to 1.02. The company with the best operating performance was Taiwan Cogeneration Corporation (TCC), while the Great Taipei Gas Corporation (GTG) revealed the worst efficiency score. Furthermore, the Tobit regression model explained that the higher number of the local employees, the greater the efficiency scores were. Besides, the lower number of the shareholders, the greater the efficiency scores were. As a result, the Taiwans government is supposed to encourage all energy companies to have a higher number of local employees and shareholders to increase their efficiency scores.

scholarly journals Determinants of Financial Performance of Nepalese Commercial Banks: Evidence from Panel Data Approach

2020 ◽  
Vol 32 (2) ◽  
pp. 45-59
Author(s):  
Purna Man Shrestha
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Commercial Banks ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Lagrangian Multiplier ◽  
Effect Model ◽  
Specific Factors ◽  
The Impact ◽  
Bank Specific Factors

The impact of bank specific factors on the financial performance of Nepalese commercial banks is analyzed in this paper. The financial performance is measured by using return on assets (ROA). Similarly, managerial efficiency (ME), liquidity (LIQ), credit risk (CR), assets quality (AQ) and operational efficiency (OE) is used as proxy of bank specific factors. This study used panel data of 17 commercial banks for the period of 2010/11 to 2017/18. Breusch and Pagan Lagrangian multiplier test showed that Pooled Regression model is not appropriate and Hausman test concluded that Fixed Effect model is appropriate rather than Random Effect model. Using the Fixed Effect model; this study concludes that bank specific factors have significant impact on financial performance of Nepalese commercial banks. Finally, this study reveals that ME, AQ and OE have significant positive impact, and CR has negative impact on the financial performance of Nepalese commercial banks.  

scholarly journals Parameters of Profitability: Evidence From Conventional and Islamic Banks of Bangladesh

2018 ◽  
Vol 8 (4) ◽  
pp. 158
Author(s):  
K. M. Golam Muhiuddin ◽  
Nusrat Jahan
Keyword(s):  
Commercial Banks ◽  
Banking System ◽  
Specific Factor ◽  
Economic Factors ◽  
Islamic Banks ◽  
Specific Factors ◽  
Conventional Banks ◽  
The Impact ◽  
Bank Specific Factors ◽  
Conventional And Islamic Banks

This paper evaluates the commercial banks of Bangladesh in terms of profitability dimension of performance and also examines the impact of selected determinants and banking system on this dimension of performance. Evaluation of trend in profitability of listed commercial banks of Bangladesh reveals that, on an average, profitability is exhibiting a decreasing trend over the selected period; however, the profitability performance of Islamic banks remained rather high compared to Conventional banks. Profitability measured by Return on Asset is found to be significantly affected by the bank-specific factors, industry-specific factor and the banking system. However, macro-economic factors evidently have no significant impact on profitability of commercial banks of Bangladesh.

scholarly journals ENVIRONMENTAL DEA METHOD FOR ASSESSING PRODUCTIVITY OF EUROPEAN COUNTRIES

2017 ◽  
Vol 23 (4) ◽  
pp. 589-607 ◽  
Author(s):  
Ewa CHODAKOWSKA ◽  
Joanicjusz NAZARKO
Keyword(s):  
European Countries ◽  
Added Value ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Dea Method ◽  
The Impact ◽  
The Relationship ◽  
Theoretical Considerations ◽  
Tobit Regression Model

The article presents the concept of environmental efficiency analysis based on the method of Data Envelopment Analysis in the case of the existence of desirable and undesirable results. Theoretical considerations are illustrated by a case study of European countries and evaluation of productivity taking into account not only economic growth but also effects which are undesirable and impossible to eliminate entirely, such as the impact on the environment. The differences in the results are explained by the relationship between policies aiming at supporting research and development with the use of the Tobit regression model. The added value of this work is to propose an integration of environmental DEA method with the concept of technological competitors. The possibility of applying the concept of DEA to technological competition was presented in the form of classification and benchmarking of the European countries. It is concluded that European countries are highly diversified in regard to the efficiency of environmental performance.

scholarly journals An Evaluation of the Technical Efficiency of the Selected Commercial Banks with the Usage of the CCR-DEA Model under the Conditions of Acquisitions in the Banking Sector

2020 ◽  
Vol 54 (1) ◽  
pp. 77
Author(s):  
Anna Pyka
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Linear Form ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Dea Model ◽  
The Impact ◽  
Ccr Model

<p>The aim of this article is to evaluate the technical efficiency of the chosen commercial banks, which in the years 2014–2016 were participants in acquisitions in the banking sector, with the usage of the Data Envelopment Analysis (DEA) model. The DEA model was modified through reshaping the linear form using the Charnes, Cooper, and Rhodes (CCR) model, which is aimed at expenditures. Particular attention was paid to the impact of acquisitions in the banking sector on the improvement or deterioration of the technical efficiency of banks that act as acquiring banks.</p>

scholarly journals Measuring Bank Efficiency: Evidence from the Tanzanian Banking Sector

2013 ◽  
Vol 8 (1) ◽  
pp. 1239-1251
Author(s):  
Zawadi Ally ◽  
Dr. G.N. Patel
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Parametric Approach ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Constant Return ◽  
Crs Model

The objective of this study is to measure the efficiency of commercial banks in Tanzania using a non-parametric approach, the input-oriented data envelopment analysis (DEA), both by constant return to scale (CRS) and variable return to scale (VRS). For this purpose, two outputs representing total loans and total interest income, and three inputs representing total deposits, the number of employees and total expenses are selected for seven-years (2006-2012) period in the analysis. The findings under CRS model identify four banks to be fully efficient in the year 2006, two banks in 2007 and one bank in 2008, 2009, 2010, 2011 and 2012, while VRS model results identify five banks to be fully efficient in the year 2006 and 2012, three banks in 2007 and two banks in 2008 and 2009, one bank 2010 and 2011. Four banks, Standard Charted bank, National Commercial Bank (NBC), Citibank and Barclays bank are found to be the most efficiency banks in Tanzania, which serve as the benchmark peers for inefficient banks in the sample, In addition Tobit regression has been used to determine the efficiency drivers.

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.

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