Operating Performance of Public Banks in Taiwan after Privatization
Abstract
The study selected nine state-owned banks in Taiwan that went on privatization in 1998 and foreign banks with similar assets scales and more branches in Taiwan as sample. Data Envelopment Analysis (DEA) is applied to explore the variation condition of efficient values for the periods between 1995 and 2007, prior and after each state-owned bank became privatized. To avoid data bias, the years affected by financial storm (from 2008 to 2010) were eliminated. Empirical results of the study are: The number of branches and assets return ratio are positively correlated to overall technical efficient value; savings and government holding ratio are negatively correlated to overall technical efficient value, showing that government releasing stock holdings through privatization can actually improve bank operating efficiency. The result of MannWhitney non-parametric examinations show that: Before the state-owned banks in Taiwan privatized, their average operating efficiency is significantly lower than that of foreign owned banks. After privatization, there is no significant difference in operating efficiency between state-owned and foreign-owned banks, revealing that privatization has effect of enhancing operating efficiency in public banks.Downloads
Copyright (c) 2013 Information Management and Business Review
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
