Technical efficiencies of Malaysian commercial banks: Two stage analysis
Document Type
Article
Publication Date
1-1-2007
Abstract
The purpose of this study is to investigate the efficiency of Malaysian Commercial Banks after the consolidation of the banking system. In this study, the data envelopment analysis (DEA) approach is used to measure the efficiency from 2001 to 2003. Further a Tobit regression is applied to examine the effect of factors that are beyond the control of the management on the bank efficiency. The significant factors are consolidated into the extended DEA model to reflect the true efficiency scores among the banks. The empirical findings indicate a wide diversity of efficiencies from one bank to another and also suggest that the diversity of the resources has had an influence on technical efficiency in Malaysian Commercial Banks.
Keywords
DEA, Technical Efficiency, Tobit Regression
Divisions
FacultyofEconomicsAdministration,Faculty_of_Business_and_Accountancy
Publication Title
Malaysian Journal of Science
Volume
26
Issue
Sp.
Publisher
Faculty of Science, University of Malaya