IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v0y0i0p1-36id2326.html
   My bibliography  Save this article

Efficiency Evaluation of Taiwan’s Commercial Banks after IFRS Adoption: A Two-System Network Data Envelopment Approach

Author

Listed:
  • Nan-Hsing Hsiung
  • Chuang-Min Chao
  • Ming-Miin Yu

Abstract

The objective of this study is to assess the operational efficiencies of Taiwanese commercial banks from 2013 to 2022, following the adoption of the International Financial Reporting Standards (IFRS) in 2013. This study introduces an extended non-convex two-system network data envelopment analysis (DEA) model, which decomposes the production process into two sub-processes: profitability and marketability stages. Additionally, the study categorizes eighteen listed commercial banks into two groups based on their affiliation with financial holding companies (FHCs). The results of the Mann-Whitney U test reveal significant differences in both profitability efficiency and marketability efficiency between FHC banks and non-FHC banks. However, the overall efficiency of FHC banks does not differ significantly from that of non-FHC banks during the sample period. The empirical findings indicate that, on average, banks affiliated with FHCs outperform those not affiliated with FHCs in terms of profitability efficiency, with this effect being statistically significant. Conversely, FHC banks exhibit lower marketability efficiency compared to non-FHC banks. These results suggest that while FHC affiliation can enhance profitability efficiency, it may not necessarily improve marketability efficiency.JEL: G21,G30

Suggested Citation

  • Nan-Hsing Hsiung & Chuang-Min Chao & Ming-Miin Yu, 0. "Efficiency Evaluation of Taiwan’s Commercial Banks after IFRS Adoption: A Two-System Network Data Envelopment Approach," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 0(0), pages 1-36.
  • Handle: RePEc:voj:journl:v:0:y:0:i:0:p:1-36:id:2326
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/2326/864
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Bank efficiency; Network Data Envelopment Analysis; International Financial Reporting Standards; Financial Holding Company;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:voj:journl:v:0:y:0:i:0:p:1-36:id:2326. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.