A DEA-TOPSIS approach for ranking credit institutions

Measuring the relative efficiency of financial units plays essential role for making strategic decisions such as business development, downsizing, etc. This paper presents an empirical investigation to rank different branches of a credit institution named Samen in city of Semnan, Iran. The proposed...

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Main Authors: Mohammad Ehsani, Abolfazl Danaei
Format: Article
Language:English
Published: Growing Science 2014-09-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol4/msl_2014_249.pdf
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author Mohammad Ehsani
Abolfazl Danaei
author_facet Mohammad Ehsani
Abolfazl Danaei
author_sort Mohammad Ehsani
collection DOAJ
description Measuring the relative efficiency of financial units plays essential role for making strategic decisions such as business development, downsizing, etc. This paper presents an empirical investigation to rank different branches of a credit institution named Samen in city of Semnan, Iran. The proposed study uses data envelopment analysis (DEA) for measuring the relative efficiency of 17 units. The results indicate that five units were efficient and using Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), the efficient units are ranked based on some inputs/outputs. The results of this study indicate that most branches of this financial unit performed poorly and a restructure in their businesses is necessary. In addition, the study has provided some evidences that considering employee wage, bank deposit and administration expenses as inputs for DEA implementation seems to provide better results than using total assets and equities.
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institution Kabale University
issn 1923-2934
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language English
publishDate 2014-09-01
publisher Growing Science
record_format Article
series Management Science Letters
spelling doaj-art-9e5b6931348e421aa06cea215d24aed32025-08-20T03:38:43ZengGrowing ScienceManagement Science Letters1923-29341923-93432014-09-01492071207610.5267/j.msl.2014.8.014A DEA-TOPSIS approach for ranking credit institutionsMohammad EhsaniAbolfazl DanaeiMeasuring the relative efficiency of financial units plays essential role for making strategic decisions such as business development, downsizing, etc. This paper presents an empirical investigation to rank different branches of a credit institution named Samen in city of Semnan, Iran. The proposed study uses data envelopment analysis (DEA) for measuring the relative efficiency of 17 units. The results indicate that five units were efficient and using Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), the efficient units are ranked based on some inputs/outputs. The results of this study indicate that most branches of this financial unit performed poorly and a restructure in their businesses is necessary. In addition, the study has provided some evidences that considering employee wage, bank deposit and administration expenses as inputs for DEA implementation seems to provide better results than using total assets and equities.http://www.growingscience.com/msl/Vol4/msl_2014_249.pdfData envelopment analysisDEATOPSISCredit institution
spellingShingle Mohammad Ehsani
Abolfazl Danaei
A DEA-TOPSIS approach for ranking credit institutions
Management Science Letters
Data envelopment analysis
DEA
TOPSIS
Credit institution
title A DEA-TOPSIS approach for ranking credit institutions
title_full A DEA-TOPSIS approach for ranking credit institutions
title_fullStr A DEA-TOPSIS approach for ranking credit institutions
title_full_unstemmed A DEA-TOPSIS approach for ranking credit institutions
title_short A DEA-TOPSIS approach for ranking credit institutions
title_sort dea topsis approach for ranking credit institutions
topic Data envelopment analysis
DEA
TOPSIS
Credit institution
url http://www.growingscience.com/msl/Vol4/msl_2014_249.pdf
work_keys_str_mv AT mohammadehsani adeatopsisapproachforrankingcreditinstitutions
AT abolfazldanaei adeatopsisapproachforrankingcreditinstitutions
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