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A study of cost efficiency and privatisation in Taiwan's banks: the impact of the Asian financial crisis

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  • Tser-Yieth Chen

Abstract

There is evidence to suggest that the Asian financial crisis has undermined cost efficiency, technical efficiency and allocative efficiency in Taiwan's banks, when a data envelopment analysis method is employed. Estimated results show that privately owned banks had higher cost efficiency than that of publicly owned banks in 1994--1996. However, the tide turned in 1997--2000, with cost efficiency of privately owned banks lower than publicly owned banks. The rate of return of banks and bank loss on bad loans would be the major reasons.

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  • Tser-Yieth Chen, 2004. "A study of cost efficiency and privatisation in Taiwan's banks: the impact of the Asian financial crisis," The Service Industries Journal, Taylor & Francis Journals, vol. 24(5), pages 137-151, September.
  • Handle: RePEc:taf:servic:v:24:y:2004:i:5:p:137-151
    DOI: 10.1080/0264206042000276883
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    1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181, Decembrie.
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    Cited by:

    1. Li-Hua Lai & Li-Chin Hung & Chau-Jung Kuo, 2016. "Do Well-Financial Holding Company Organized Banks in Taiwan Take More Risk?," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 19(04), pages 1-30, December.
    2. Ihsen Abid & Mohamed Goaied, 2017. "Benchmarking Banking Efficiency Using a Meta-Profit Function," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 15(1), pages 45-74, March.
    3. Imad Bou-Hamad & Abdel Latef Anouze & Ibrahim H. Osman, 2022. "A cognitive analytics management framework to select input and output variables for data envelopment analysis modeling of performance efficiency of banks using random forest and entropy of information," Annals of Operations Research, Springer, vol. 308(1), pages 63-92, January.

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