Efficiency evaluation of Taiwan’s commercial banks after IFRS adoption: A two-system network data envelopment approach
The objective of this study is to assess the operational efficiencies of Taiwanese commercial banks from 2013 to 2022, following the adoption of the International Financial Reporting Standards (IFRS) in 2013. This study introduces an extended non-convex two-system network data envelopment analysis (...
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| Format: | Article |
| Language: | English |
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Economists' Association of Vojvodina
2025-01-01
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| Series: | Panoeconomicus |
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| Online Access: | https://doiserbia.nb.rs/img/doi/1452-595X/2025/1452-595X2400021H.pdf |
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| author | Hsiung Nan-Hsing Chao Chuang-Min Yua Ming-Miin |
| author_facet | Hsiung Nan-Hsing Chao Chuang-Min Yua Ming-Miin |
| author_sort | Hsiung Nan-Hsing |
| collection | DOAJ |
| description | The objective of this study is to assess the operational efficiencies of Taiwanese commercial banks from 2013 to 2022, following the adoption of the International Financial Reporting Standards (IFRS) in 2013. This study introduces an extended non-convex two-system network data envelopment analysis (DEA) model, which decomposes the production process into two sub-processes: profitability and marketability stages. Additionally, the study categorizes eighteen listed commercial banks into two groups based on their affiliation with financial holding companies (FHCs). The results of the Mann-Whitney U test reveal significant differences in both profitability efficiency and marketability efficiency between FHC banks and non-FHC banks. However, the overall efficiency of FHC banks does not differ significantly from that of non-FHC banks during the sample period. The empirical findings indicate that, on average, banks affiliated with FHCs outperform those not affiliated with FHCs in terms of profitability efficiency, with this effect being statistically significant. Conversely, FHC banks exhibit lower marketability efficiency compared to non-FHC banks. These results suggest that while FHC affiliation can enhance profitability efficiency, it may not necessarily improve marketability efficiency. |
| format | Article |
| id | doaj-art-f05b5ae0d9764f07ab291dd486c8bc3c |
| institution | OA Journals |
| issn | 1452-595X 2217-2386 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Economists' Association of Vojvodina |
| record_format | Article |
| series | Panoeconomicus |
| spelling | doaj-art-f05b5ae0d9764f07ab291dd486c8bc3c2025-08-20T02:30:35ZengEconomists' Association of VojvodinaPanoeconomicus1452-595X2217-23862025-01-0172227330210.2298/PAN170706021H1452-595X2400021HEfficiency evaluation of Taiwan’s commercial banks after IFRS adoption: A two-system network data envelopment approachHsiung Nan-Hsing0Chao Chuang-Min1Yua Ming-Miin2National Taipei University of Business, Department of Public Finance and Tax Adminstration, TaiwanNational Taipei University of Technology, Department of Business Management, Taipei, TaiwanNational Taiwan Ocean University, Department of Transportation Science, Keelung City, Taiwan The objective of this study is to assess the operational efficiencies of Taiwanese commercial banks from 2013 to 2022, following the adoption of the International Financial Reporting Standards (IFRS) in 2013. This study introduces an extended non-convex two-system network data envelopment analysis (DEA) model, which decomposes the production process into two sub-processes: profitability and marketability stages. Additionally, the study categorizes eighteen listed commercial banks into two groups based on their affiliation with financial holding companies (FHCs). The results of the Mann-Whitney U test reveal significant differences in both profitability efficiency and marketability efficiency between FHC banks and non-FHC banks. However, the overall efficiency of FHC banks does not differ significantly from that of non-FHC banks during the sample period. The empirical findings indicate that, on average, banks affiliated with FHCs outperform those not affiliated with FHCs in terms of profitability efficiency, with this effect being statistically significant. Conversely, FHC banks exhibit lower marketability efficiency compared to non-FHC banks. These results suggest that while FHC affiliation can enhance profitability efficiency, it may not necessarily improve marketability efficiency.https://doiserbia.nb.rs/img/doi/1452-595X/2025/1452-595X2400021H.pdfbank efficiencynetwork data envelopment analysisinternational financial reporting standardsfinancial holding company |
| spellingShingle | Hsiung Nan-Hsing Chao Chuang-Min Yua Ming-Miin Efficiency evaluation of Taiwan’s commercial banks after IFRS adoption: A two-system network data envelopment approach Panoeconomicus bank efficiency network data envelopment analysis international financial reporting standards financial holding company |
| title | Efficiency evaluation of Taiwan’s commercial banks after IFRS adoption: A two-system network data envelopment approach |
| title_full | Efficiency evaluation of Taiwan’s commercial banks after IFRS adoption: A two-system network data envelopment approach |
| title_fullStr | Efficiency evaluation of Taiwan’s commercial banks after IFRS adoption: A two-system network data envelopment approach |
| title_full_unstemmed | Efficiency evaluation of Taiwan’s commercial banks after IFRS adoption: A two-system network data envelopment approach |
| title_short | Efficiency evaluation of Taiwan’s commercial banks after IFRS adoption: A two-system network data envelopment approach |
| title_sort | efficiency evaluation of taiwan s commercial banks after ifrs adoption a two system network data envelopment approach |
| topic | bank efficiency network data envelopment analysis international financial reporting standards financial holding company |
| url | https://doiserbia.nb.rs/img/doi/1452-595X/2025/1452-595X2400021H.pdf |
| work_keys_str_mv | AT hsiungnanhsing efficiencyevaluationoftaiwanscommercialbanksafterifrsadoptionatwosystemnetworkdataenvelopmentapproach AT chaochuangmin efficiencyevaluationoftaiwanscommercialbanksafterifrsadoptionatwosystemnetworkdataenvelopmentapproach AT yuamingmiin efficiencyevaluationoftaiwanscommercialbanksafterifrsadoptionatwosystemnetworkdataenvelopmentapproach |