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Performance measurement of Taiwan's commercial banks

Chien‐Ta Ho (Department of International Trade, Lan‐Yang Institute of Technology, Taiwan)
Dauw‐Song Zhu (Department of Business Administration, National Don‐Hwa University, Taiwan)

International Journal of Productivity and Performance Management

ISSN: 1741-0401

Article publication date: 1 July 2004



Most previous studies concerning company performance evaluation focus merely on operational efficiency. Operational effectiveness, however, which might directly influence the survival of a company, is usually ignored. As a result, this paper presents a study which uses an innovative two‐stage data envelopment analysis model that separates efficiency and effectiveness to evaluate the performance of 41 listed corporations of the banking industry in Taiwan. The empirical result of this paper is that a company with better efficiency does not always mean that it has better effectiveness. There is no apparent correlation between these two indicators.



Ho, C. and Zhu, D. (2004), "Performance measurement of Taiwan's commercial banks", International Journal of Productivity and Performance Management, Vol. 53 No. 5, pp. 425-434.



Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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