Open AccessThe Efficiency of Strategic Management in Brazil: The Case of the Banking System
Author(s) -
Flávio Paim Freaza,
Luiz Eduardo Madeiro Guedes,
Luiz Flávio Autran Monteiro Gomes
Publication year - 2008
Publication title -
brazilian business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.176
H-Index - 4
ISSN - 1808-2386
DOI - 10.15728/bbr.2008.5.1.2
Subject(s) - data envelopment analysis , nonparametric statistics , variable (mathematics) , work (physics) , selection (genetic algorithm) , business , volume (thermodynamics) , computer science , operations research , industrial organization , econometrics , finance , economics , statistics , artificial intelligence , mathematics , engineering , mechanical engineering , mathematical analysis , physics , quantum mechanics
This article examines the efficiency of the 50 largest financial conglomerates in the Brazilian retail banking system by total volume of assets, among those with at least 50 branches in the country, based on figures from their published annual reports for 2004. After providing a brief historical background, we use data envelopment analysis (DEA) together with the I-O stepwise technique for variable selection. We introduce into the analysis the creation and simulation of artificial or unobserved productive units (artificial decision making units). At the end we analyze the financial institutions according to the results presented by the nonparametric DEA method, using the artificial DMUs, to observe the units considered as efficient and the variables that the inefficient units need to work on to improve their performance.
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