Measuring bank performance using DEA and Monte Carlo simulation
by Chien-Ta Bruce Ho, Desheng Dash Wu
International Journal of Management and Enterprise Development (IJMED), Vol. 5, No. 6, 2008

Abstract: Rapid changes in the economic environment have raised the need to evaluate the performance or efficiency in banks, especially after the financial liberalisation in East Asia. Data Envelopment Analysis (DEA) is able to measure the efficiency of the banking industry. In this paper, we use DEA with Monte Carlo simulation to measure the efficiency of 49 banks in Taiwan. Missing data is carefully handled in our case by use of stepwise regression model. A technique to implement DEA Monte Carlo simulation analysis is presented based on Microsoft Excel spreadsheet. DEA Monte Carlo simulation indicates our DEA results exhibit a good robustness in terms of identification of efficient banks.

Online publication date: Sun, 09-Nov-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Management and Enterprise Development (IJMED):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com