Commercial Bank Efficiency Evaluation in Consideration of the Undesirable Output and Its Link with Stakeholders Relationship: An Application of China’s Commercial Banks
Author(s) -
Jianyue Ji,
Yanxia Wang
Publication year - 2014
Publication title -
mathematical problems in engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.262
H-Index - 62
eISSN - 1026-7077
pISSN - 1024-123X
DOI - 10.1155/2014/949717
Subject(s) - tobit model , stakeholder , commercial bank , stakeholder theory , business , function (biology) , china , panel data , expectancy theory , industrial organization , relation (database) , empirical research , economics , econometrics , finance , computer science , mathematics , management , statistics , evolutionary biology , database , political science , law , biology
Based on the modern contract theory, expectancy theory, and stakeholder theory, this paper analyzes how stakeholders relationship influences the efficiency of commercial banks and finds that the efficiency is a function of stakeholders relationship. A DEA model with Seiford's linear transformation function is developed to evaluate the efficiency in consideration of the undesirable output. The panel Tobit model is established to conduct empirical research with data of 14 Chinese commercial banks from 2004 to 2012. The study finds that except for business customer relation, stakeholder relationship is the key variable that influences comprehensive efficiency of commercial banks
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