The impact of uncertain financial risk on the operation efficiency of banks
This paper introduces the latest research on the application of the new dynamic network DEA method in the measurement of the operating efficiency of the banking industry, and measures the operating efficiency of 15 listed banks in China by using the directional distance function (DDF) and the new dy...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-12-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023085869 |
| _version_ | 1797383991988322304 |
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| author | Li Huizhi Yu Xianghua |
| author_facet | Li Huizhi Yu Xianghua |
| author_sort | Li Huizhi |
| collection | DOAJ |
| description | This paper introduces the latest research on the application of the new dynamic network DEA method in the measurement of the operating efficiency of the banking industry, and measures the operating efficiency of 15 listed banks in China by using the directional distance function (DDF) and the new dynamic network DEA model combined with the Malmquist index. To effectively evaluate the impact of uncertain financial risks on the operating efficiency of banks, we respectively selected the measurement indicators of total assets, number of employees, deposits, and net profit to calculate the operating efficiency of banks in the process of medium and long-term investment. According to the actual situation of bank operation, the process of bank operation is divided into the input stage of capital and manpower, the profit stage of capital operation, and operation stage, and a two-stage DEA network model is constructed. By measuring the overall operating efficiency of China's 15 banks from 2017 to 2022, the results show that the new dynamic network DEA model can better distinguish the efficiency of China's banks from the single-stage DEA model. In the new dynamic network model, the total factor productivity of most banks in China is reduced to varying degrees, which is greatly affected by pure technical efficiency. |
| first_indexed | 2024-03-08T21:29:00Z |
| format | Article |
| id | doaj.art-37a030458a87419fbde5b7b6e4a1296c |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-08T21:29:00Z |
| publishDate | 2023-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-37a030458a87419fbde5b7b6e4a1296c2023-12-21T07:33:08ZengElsevierHeliyon2405-84402023-12-01912e21378The impact of uncertain financial risk on the operation efficiency of banksLi Huizhi0Yu Xianghua1Hunan University of Science and Engineering, Yongzhou, 425199, Hunan, China; Center for International Education, Philippine Christian University, Manila City, 1004, PhilippinesCollege of Chemistry & Bio-Engineering, Hunan University of Science and Engineering, Yongzhou, 425199, Hunan, China; Hunan Provincial Engineering Research Center for Ginkgo biloba, China; Corresponding author. College of Chemistry & Bio-Engineering, Hunan University of Science and Engineering, Yongzhou, 425199, Hunan, China.This paper introduces the latest research on the application of the new dynamic network DEA method in the measurement of the operating efficiency of the banking industry, and measures the operating efficiency of 15 listed banks in China by using the directional distance function (DDF) and the new dynamic network DEA model combined with the Malmquist index. To effectively evaluate the impact of uncertain financial risks on the operating efficiency of banks, we respectively selected the measurement indicators of total assets, number of employees, deposits, and net profit to calculate the operating efficiency of banks in the process of medium and long-term investment. According to the actual situation of bank operation, the process of bank operation is divided into the input stage of capital and manpower, the profit stage of capital operation, and operation stage, and a two-stage DEA network model is constructed. By measuring the overall operating efficiency of China's 15 banks from 2017 to 2022, the results show that the new dynamic network DEA model can better distinguish the efficiency of China's banks from the single-stage DEA model. In the new dynamic network model, the total factor productivity of most banks in China is reduced to varying degrees, which is greatly affected by pure technical efficiency.http://www.sciencedirect.com/science/article/pii/S2405844023085869New dynamic networkDEAMalmquist indexTotal factor productivityBank operating efficiency |
| spellingShingle | Li Huizhi Yu Xianghua The impact of uncertain financial risk on the operation efficiency of banks Heliyon New dynamic network DEA Malmquist index Total factor productivity Bank operating efficiency |
| title | The impact of uncertain financial risk on the operation efficiency of banks |
| title_full | The impact of uncertain financial risk on the operation efficiency of banks |
| title_fullStr | The impact of uncertain financial risk on the operation efficiency of banks |
| title_full_unstemmed | The impact of uncertain financial risk on the operation efficiency of banks |
| title_short | The impact of uncertain financial risk on the operation efficiency of banks |
| title_sort | impact of uncertain financial risk on the operation efficiency of banks |
| topic | New dynamic network DEA Malmquist index Total factor productivity Bank operating efficiency |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023085869 |
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