Journal article
First Financial Restructuring and operating efficiency: Evidence from Taiwanese commercial banks
Journal of banking & finance, v 34(7), pp 1461-1471
2010
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper investigates the effect of the “First Financial Restructuring” (FFR) on the operating efficiency of commercial banks in Taiwan. Applying data envelopment analysis (DEA) to operations data for 40 commercial banks over the 6-year period 2000–2005, we find that while the banks have lower operating efficiency on average during the reform period (2002–2003) compared to the pre-reform period (2000–2001), improved operating efficiency is reflected in the post-reform period (2004–2005). Our results remain unchanged even after controlling for the non-performing loan ratio, capital adequacy ratio, bank ownership, size, and GDP growth rate. These results suggest that the improved efficiency in the post-reform period is possibly due to enhanced banking and risk management practices and benefits obtained from compliance with the FFR.
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Details
- Title
- First Financial Restructuring and operating efficiency: Evidence from Taiwanese commercial banks
- Creators
- Hsing-Chin Hsiao - National Taipei University of BusinessHsihui Chang - Drexel UniversityAnna M. Cianci - Drexel UniversityLi-Hua Huang - National Taipei University of Business
- Publication Details
- Journal of banking & finance, v 34(7), pp 1461-1471
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:000278345700005
- Scopus ID
- 2-s2.0-77952675328
- Other Identifier
- 991019169670704721
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InCites Highlights
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- Collaboration types
- International collaboration
- Web of Science research areas
- Business, Finance
- Economics