Efficiency measurement of Universal and Commercial Banks, 2000-2007: Data envelopment analysis and stochastic frontier analysis

Date of Publication

2008

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Applied Economics

Subject Categories

Economics

College

Ramon V. Del Rosario College of Business

Department/Unit

Economics

Thesis Adviser

Cesar Rufino

Defense Panel Member

Gerardo Largoza

Marissa Garcia

Abstract/Summary

This study estimates cost efficiency of 14 publicly-listed Philippine privately-owned domestic universal and commercial banks using two sophisticated techniques: Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) and evaluates the performance and reliability of the aforementioned methods. This study has some interesting points. First, the two methodologies led to inconsistent results with the average overall cost efficiency of DEA and SFA are 75.05% and 11.54%, respectively. Due to their different methodologies, DEA results are considered more reliable because of its ability to handle small samples. Second, fluctuations in the average overall cost efficiency of the sample are noted during this period. Lastly, individual bank events as well as the macroeconomic events are deemed to have a significant impact on bank performances.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU16049

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

84[64] leaves 29 cm.

Keywords

Banks and banking--Measurement; Universal banks --Philippines

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