Title: Commercial banks' performance in Taiwan
Authors: Yu-cheng Chen, Ling Sun, Chih-wei Peng
Addresses: Department of Finance, National Chung Hsing University, 250 Kuo Kuang Rd., Taichung 402, Taiwan. ' Department of Accounting, Providence University, Taichung Hsien 433, Taiwan. ' Department of Accounting, National Cheng Kung University, Tainan 701, Taiwan
Abstract: This paper studies the efficiency and productivity growth of commercial banks in Taiwan before and after financial holding corporations| establishment. We employ a Data Envelopment Analysis (DEA) approach to generate efficiency indices as well as Malmquist productivity growth indices for each bank. We chose 15 member banks of financial holding corporations and 24 non-member banks of financial holding corporations as our sample banks. The time period covered is from January 2000 to June 2003. From this study, we found the following results. First, the member banks of financial holding corporations are more efficient than the non-member banks. Second, both member banks and non-member banks of financial holding corporations demonstrate a greater technical progress in the second time period.
Keywords: synergy; data envelopment analysis; DEA; Malmquist productivity index; financial holding corporations; Taiwan; commercial banks; banking industry; efficiency growth; productivity growth; technical progress; competitive advantage.
DOI: 10.1504/IJBPM.2005.007369
International Journal of Business Performance Management, 2005 Vol.7 No.4, pp.444 - 463
Published online: 13 Jul 2005 *
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