A slacks-based inefficiency measure for a two-stage system with bad outputs

Fukuyama, Hirofumi; Weber, William

doi:10.1016/j.omega.2009.10.006

Cited by 351 publications

(170 citation statements)

References 36 publications

Supporting

Mentioning

168

Contrasting

Unclassified

Order By: Relevance

“…In this respect, we find that the family of network DEA models proposed by Färe and Grosskopf [14] can play an important role in opening the black box and identifying sources of inefficiency in parts of the organisational processes. These models have received considerable attention recently and we can find several examples of applications in different contexts [18,19]. Cook et al [20] provide a recent review of the different DEA models developed to deal with two-stage network processes.…”

Section: The Integration Of Data Envelopment Analysis and Balanced Scmentioning

confidence: 99%

Integrating the Data Envelopment Analysis and the Balanced Scorecard approaches for enhanced performance assessment

Amado

Santos

Marques

2012

Omega

114

View full text Add to dashboard Cite

This article presents the development of a conceptual framework which aims to assess Decision Making Units (DMU) from multiple perspectives. The proposed conceptual framework combines the Balanced Scorecard (BSC) method with the non-parametric technique known as Data Envelopment Analysis (DEA) by using various interconnected models which try to encapsulate four perspectives of performance (financial, customers, internal processes, learning and growth).The practical relevance of the conceptual model has been tested by using it to assess the performance of DMUs in a multinational company which operates in two business areas.Various models were developed with the collaboration of the directors of the company in order to conceive an appropriate and consensual framework which may provide useful information for the company. The application of the conceptual framework provides structured information regarding the performance of each DMU (from multiple perspectives) and ways to improve it. By integrating the BSC and the DEA approaches this research helps to identify where there is room for improving organisational performance and points out opportunities for reciprocal learning between DMUs. In doing so, this article provides a set of recommendations relating to the successful application of DEA and its integration with the BSC, in order to promote a continuous learning process and to bring about improvements in performance.

show abstract

Section: The Integration Of Data Envelopment Analysis and Balanced Scmentioning

confidence: 99%

Integrating the Data Envelopment Analysis and the Balanced Scorecard approaches for enhanced performance assessment

Amado

Santos

Marques

2012

Omega

114

View full text Add to dashboard Cite

show abstract

“…According to Berger and DeYoung (1997) and Van Hoose (2010) this variable captures the quality of monitoring over loan portfolios. There also exists a stream of literature that introduces risk in non-parametric bank efficiency analysis (Park and Weber 2006;Fukuyama and Weber 2010;Barros et al 2012). In this case, risk takes the form of undesirable outputs, and for financial institutions it is typically proxied through NPL.…”

Section: Introductionmentioning

confidence: 99%

“…That is, the composition of the total loans portfolio is unaffected by other assets such as investment portfolios. To incorporate all these banking characteristics in efficiency analyses there is -to the best of our knowledge-no formalised modelling of NPL, as most existing studies assume the joint production of all bank outputs (see, e.g., Park andWeber (2006), Fukuyama andWeber (2010) or Barros et al (2012)). …”

mentioning

confidence: 99%

Monitoring bank performance in the presence of risk

Epure

Lafuente

2014

J Prod Anal

View full text Add to dashboard Cite

This paper devises management and accounting tools for monitoring bank performance. We first propose a multidimensional efficiency measure that integrates credit risk and is adapted to the real banking technology. Second, traditional accounting ratios complement the analysis. Third, the impact of different risk measures over efficiency and accounting ratios is shown. Fourth, we examine the effect of CEO turnover on future performance. An empirical application considers a unique dataset of Costa Rican banks during 1998-2007. Results reveal that performance improvements follow regulatory changes and that risk explains differences in performance. Non-performing loans negatively affect efficiency and return on assets, whereas the capital adequacy ratio positively affects the net interest margin. This supports that incurring monitoring costs and having higher levels of capitalisation may enhance performance. Finally, results confirm that appointing CEOs from outside the bank significantly improves performance, thus suggesting the potential benefits of new organisational practices.

show abstract

“…As indicated in Fukuyama and Weber (2009) and Zhou et al (2012) a conventional DDF model may overestimate the efficiency when non-zero slacks appears in the efficiency measures, hence, a new generation of non-radial DDF model has been introduced to the DEA literature (Fukuyama et al, 2011) and have been successfully applied in many applications (Fukuyama and Weber, 2010;Mahlberg and Sahoo, 2011;Sahoo et al, 2011;Wang et al, 2013;Zhou et al, 2012). DDF models have also been applied in many disciplines including energy efficiency , assessment of banks (Barros et al, 2012), agriculture (Blancard et al, 2006).…”

Section: Directional Distance Functionmentioning

confidence: 99%