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Macau Periodical Index (澳門期刊論文索引)
- Author
- Ho, Chien-Ta; Wang, Yu-Chung
- Title
- Performance evaluation for trust firms reorganizing into commercial banks in Taiwan
- Journal Name
- Euro Asia Journal of Management
- Pub. Info
- Dec. 2004, Vol.14, No.2, pp. 113-134
- Abstract
- Abstract : In this study, the authors applied two approaches, data envelopment analysis (DEA) and financial statement analysis (FSA), to evaluate the performance of trust businesses reorganized into commercial banks in Taiwan. Both approaches have limitations in application as well as respective advantages and disadvantages. Analysis and comparison of the DEA and FSA when applied to the evaluation of performance are discussed. The empirical result shows that the rankings of the three firms by using DEA and FSA are the same: first, the United World Chinese Bank, second, China Trust Commercial Bank, and third, Chinfon Bank. Paragraph Headings: 1. Introduction 2. Background of the study 3. Research method 3.1. Data envelopment analysis (DEA) 3.1.1. Introduction 3.1.2. The DEA model 3.2. The strengths and weaknesses on the application of DEA 4. Financial statement analysis (FSA) 4.1. Introduction 4.2. Strengths and weaknesses in applying FSA 4.2.1. Strengths 4.2.2. Weaknesses 5. Application: the use of DEA 5.1. Selection of input and output variables 5.2. Data and sample 5.3. Findings and analysis 5.3.1. Software for calculating DEA efficiency value 5.3.2. Correlation between input and output variables 6. Application: the use of FSA 6.1. The concept 6.2. Selection of financial ratios 6.3. Findings and analysis 6.3.1. Liquidity 6.3.2. Safety 6.3.3. Profitability 6.3.4. Growth 6.3.5. Efficiency 6.3.6. The five-power analysis 7. Comparison of FSA and DEA 8. Conclusion and future research Tables: 1. The preliminary selection of input and output variables and their frequency of appearances in banking literature 2. The business operation of banks and investment trust firms 3. The four input variables and two output variables that were selected 4. The pearson product moment correlation coefficients of all input and output variables 5. The ranking of the three banks in terms of DEA performance value 6. The selection of aggregated financial ratios and their frequency of appearances in the literature 7. The original value and ranking of three banks in terms of the financial ratios of liquidity 8. The original value and ranking of three banks in terms of the financial ratios of safety 9. The original value and ranking of three banks in terms of the financial ratios of profitablility 10. The original value and ranking of three banks in terms of the financial ratios of growth 11. The original value and ranking of three banks in terms of the financial ratios of efficiency 12. The ranking of overall performance of the three banks 13. A comparison of FSA versus DEA Figures: 1. Production process of banking 2. Total potential improvements in iuput and output