PALEČKOVÁ, Iveta. COST EFFICIENCY MEASUREMENT USING TWO-STAGE DATA ENVELOPMENT ANALYSIS IN THE BANKING SECTOR. Acta Oeconomica. 2019, vol. 69, No 3, p. 445-466. ISSN 0001-6373. Available from: https://dx.doi.org/10.1556/032.2019.69.3.6.
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Basic information
Original name COST EFFICIENCY MEASUREMENT USING TWO-STAGE DATA ENVELOPMENT ANALYSIS IN THE BANKING SECTOR
Authors PALEČKOVÁ, Iveta (203 Czech Republic, guarantor, belonging to the institution).
Edition Acta Oeconomica, 2019, 0001-6373.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50202 Applied Economics, Econometrics
Country of publisher Hungary
Confidentiality degree is not subject to a state or trade secret
WWW URL
RIV identification code RIV/47813059:19520/19:A0000004
Organization unit School of Business Administration in Karvina
Doi http://dx.doi.org/10.1556/032.2019.69.3.6
UT WoS 000491065800006
Keywords in English commercial bank; cost efficiency; Czech Republic; Data Envelopment Analysis; efficiency determinants; panel data analysis; Slovakia
Links GA16-17796S, research and development project.
Changed by Changed by: Miroslava Snopková, učo 43819. Changed: 7/5/2020 11:45.
Abstract
The aim of the paper is to estimate cost efficiency and its determinants of the Czech and Slovak commercial banks within the period of 2005–2015. In this paper two-stage Data Envelopment Analysis (DEA) is used. In the first stage, I estimate the relative cost efficiency applying the input-oriented model with variable return to scale and find that the Czech banks were more cost efficient than the Slovak banks. The main reason of cost inefficiency is the excess of clients’ deposits in the banks’ balance sheet. In the second stage, we use the panel data analysis and estimated the determinants of cost efficiency in the two countries. We choose 8 bank-specific and macroeconomic factors that influence cost efficiency. The results show that the larger banks with higher liquidity risk and with a lower value of the net interest margin were more efficient. It confirms the reason of inefficiency determined from the DEA model. Banks were highly cost efficient during the economic expansion with a lower value of the inflation rate.
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