Incorporating Credit Quality in Bank Efficiency Measurements: A Directional Distance Function Approach

Qayyum, Abdul; Riaz, Khalid

doi:10.3390/jrfm11040078

Cited by 8 publications

(5 citation statements)

References 44 publications

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“…It is rarely found a research examined the determinant of bank efficiency from the perspective of agency perspective such board capital. Furthermore, most bank efficiency research is more on developed market or emerging countries (Andries and Ursu, 2016;Casu and Ferarri, 2015;Fujii, Managi, Matousek and Rughoo, 2018;Qayyum and Riaz, 2018), less is known about bank efficiency with frontier markets perspective. Comparatively, the banking industry development in frontier market could offer a different snapshot of this bank efficiency research area as it is new, less-open, and higher transaction cost.…”

Section: Introductionmentioning

confidence: 99%

Role of Board Capital on Cambodia Bank Efficiency

Kontesa

Kyee

2019

JAB

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This research investigates the relationship between board capital and bank efficiency within Cambodian banking industry over 2011-2015. The bank efficiency is measured using Data Envelopment Analysis, meanwhile, the board capital is measured through content analysis of annual report and internet reporting. Using robust panel regression, we find that there is positive effect of board capital on bank efficiency supporting the knowledge transfer theory and human capital theory. The higher level board capital have increase the level of bank efficiency. Our results also indicate the importance of board capital for banking industry in achieving better efficiency. Our study exploits knowledge transfer theory and human capital theory showing that knowledge as well as experience has played an important role in the management of the bank's operation as the core business of a commercial bank is focusing to the activities of lending and borrowing of capital (Guthrie, 2001). As a result, the core competitiveness of the bank is highly dependent on the capability of the management teams in managing the experience and knowledge.

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Section: Introductionmentioning

confidence: 99%

Role of Board Capital on Cambodia Bank Efficiency

Kontesa

Kyee

2019

JAB

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“…Tsolas (2020) measured performance differences between 62 precious metal mutual funds using weighted additive data envelopment analysis (DEA). Other authors like Dia et al (2020), Neves et al (2020), and Qayyum and Riaz (2018) used DEA for benchmarking and performance measurement in the banking sector in various ways, which proved the applicability of this approach. Horváthová et al (2021) used DEA for benchmarking and performance measurement to provide necessary information for improving business performance.…”

Section: Introductionmentioning

confidence: 81%

Performance measuring of wood-processing microenterprises through Data Envelopment Analysis: A case study of Slovakia, Poland, and Bulgaria

Sedliačiková,

Neykov,

Dobrovič

et al. 2024

JESI

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In the context of the role the wood-processing industry has in Slovakia, Poland, and Bulgaria, as an income provider in rural regions and contemporary challenges like inflation and intensive competition, there is a need to assess the performance of microenterprises using Data Envelopment Analysis (DEA), considering the crucial role these entities play in the regional economies. The aim is the creation of a more universally applicable DEA model for assessing the efficiency and performance of wood-processing microenterprises, taking into account the unique challenges and opportunities in Slovakia, Poland, and Bulgaria, defining the profile of optimal enterprise according to methodology in the current research, and indicating the leading problems in their performance. In their management, wood-processing enterprises respond to changes in the external environment, pursuing profit extraction in the competitive struggle. Comparisons with similar companies provide data on the economic efficiency of the sector and the gaps the enterprise needs to correct. Data from the Eurostat Structural Business Statistics were involved for 2011-2020. The current study used Data Envelopment Analysis (DEA), a nonparametric technique that allows enterprises to compare their efficiency frontiers and, from there, reveal their competitiveness. Thus, they can be arranged and measured, and the differences between the inputs and outputs of enterprises can be measured, as well as the efficiency. The results revealed that all the surveyed countries have a problem with the gross value added by a wood-processing micro-enterprise. Polish and Bulgarian enterprises have a problem with pure technical efficiency. Slovakian enterprises have excellent performance and can be used as a benchmark in optimizing the activities of Polish and Bulgarian enterprises.

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“…DEA window analysis has been applied in many areas such as tourism (Xu and Chi, 2017), energy (Yu, 2019) and banking industries (Bangarwa and Roy, 2022; Rahman and Misra, 2021; Roy et al , 2019; Qayyum and Riaz, 2018; Deville, 2009), including Islamic banks (Ahmad and Rahim, 2012; Yahya, et al , 2012) and the health-care sector (Kocisova et al , 2019). The traditional DEA model has been widely applied in the telecommunications sector to measure the relative efficiency of different companies (e g. Liao and Lien, 2012; Sadjadi and Omrani, 2010; Giokas and Pentzaropoulos, 2000).…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluating the technical efficiency of Saudi Arabian telecommunications companies using window DEA and AHP techniques

Abdel-Halim,

Al Khars,

Alnasser

2023

IMEFM

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Purpose This study aims to evaluate the efficiency of the three telecommunications companies in Saudi Arabia: Saudi Telecom Company (STC), Mobily and Zain over the period of 2010–2019. This evaluation is a step toward improving the performance of the Saudi telecommunications sector. Design/methodology/approach Three multicriteria decision-making (MCDM) techniques were used to calculate technical efficiency. These techniques include the traditional data envelopment analysis (DEA), window DEA and analytical hierarchy process (AHP). The three inputs used were total assets, operating expenses and capital expenditures, whereas the two outputs were sales revenue and total stockholders’ equity. Findings STC was ranked first using the three techniques, followed by Zain, and then Mobily. According to the DEA window analysis, these three companies were all efficient only in 2012. The efficiency was high in the initial years, 2010–2013, when it was above 0.90, and it dropped below 0.90 in the subsequent years, 2014–2019. In addition, the efficiency of STC remained high, with an average of 0.990. However, the average efficiencies of Zain and Mobily during this period were 0.807 and 0.804, respectively. Originality/value This is the first study to use the three MCDM techniques to evaluate the performance of telecommunications providers. The results show that window DEA is better than the other two techniques at evaluating performance over time, as it has a higher discrimination power than either the traditional DEA or AHP.

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Incorporating Credit Quality in Bank Efficiency Measurements: A Directional Distance Function Approach

Cited by 8 publications

References 44 publications

Role of Board Capital on Cambodia Bank Efficiency

Role of Board Capital on Cambodia Bank Efficiency

Performance measuring of wood-processing microenterprises through Data Envelopment Analysis: A case study of Slovakia, Poland, and Bulgaria

Evaluating the technical efficiency of Saudi Arabian telecommunications companies using window DEA and AHP techniques

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