A comparative study on ranking the banks using Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) approach
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 4, Issue 2
Abstract
One of the necessary tools for economic development of a country is an efficient banking system. In this study, two methods of performance evaluation including data envelopment analysis (DEA) and stochastic frontier analysis (SFA) techniques were investigated to determine the best technique having more potential in explaining the performance of banks. For this purpose, a sample of 10 banks in Iran, namely Melli, Tejarat, Saderat, Mellat, Maskan, Keshavarzi, Sanat O Madan, Pasargadae, Karafarin and Saman was studied as the statistical research community (within five years from 2005 to 2010). In the DEA application, the input variables were: the number of branches, total deposits and total costs, and the output variables were: the volume of granted facilities, total investments and total income of banks. However, in the SFA application, the variables of investments, granted facilities, deposits in other banks and activities outside of the balance sheet were the inputs and labor costs, capital costs and total costs were the outputs. The results showed a significant relationship between the two efficiency analyzing approaches and the SFA approach showed a higher accuracy.
Authors and Affiliations
Ardeshir Bazrkar*| MSc Student of Industrial Management, Department of Management, Mahabad Branch, Islamic Azad University, Mahabad, Iran,Ardeshir.13@gmail.com, Kamal Khalilpour| Assistant Professor in Applied Mathematics, Department of Mathematics, Mahabad Branch, Islamic Azad University, Mahabad, Iran
Keywords
Related Articles
- EP ID EP5311
- DOI -
- Views 328
- Downloads 16
(?,??q)?Intuitionistic irreducible and strongly irreducible fuzzybi-ideals of ?-semigroup
In this paper, we define prime, strongly prime and semiprime(?,??q)? intuitionistic fuzzy bi-ideals of ?-semigroups, which is a generalization of the concept of prime, strongly prime and semiprime fuzzy bi-ideals of ?-se...
Feminism as a Literary Movement in India
Feminism means granting the same rights to women as those enjoyed by men. Feminism does not particularly talk of equality and rights of women but it is more about compassion, respect and understanding from the male count...
The study of +Animate in children`s stories Age Levels: (2-6), (7-9), and (10-12) years old
It is called Children`s literature, when it is created simply for children. As children have their own special attitudes, the style of the book written for them should be in conformity with their nature. In addition, the...
Alternate Furrow Irrigation Effect on Yield, Yield Components and Seed Germination of Foxtail Millet (Setaria italica) In Double Cropping System
A field and a laboratory experiments were conducted in 2008 to determine the effect of irrigation treatments on yield, yield components and seed germination of foxtail millet (Setaria italica). Conventional furrow irriga...
WEB-BASED DISTANCE EDUCATION: OPPORTUNITIES AND THREATS
This exploratory research was carried out to identify opportunities and threats of developing web-based distance education in Iranian higher education system using Delphi method. Classification of the opinion of panelist...