An Eco-Inefficiency Dominance Probability Approach for Chinese Banking Operations Based on Data Envelopment Analysis
Data envelopment analysis (DEA) has proven to be a powerful technique for assessing the relative performance of a set of homogeneous decision-making units (DMUs). A critical feature of conventional DEA approaches is that only one or several sets of optimal virtual weights (or multipliers) are used t...
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| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2020-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2020/3780232 |
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| author | Feng Li Lunwen Wu Qingyuan Zhu Yanling Yu Gang Kou Yi Liao |
| author_facet | Feng Li Lunwen Wu Qingyuan Zhu Yanling Yu Gang Kou Yi Liao |
| author_sort | Feng Li |
| collection | DOAJ |
| description | Data envelopment analysis (DEA) has proven to be a powerful technique for assessing the relative performance of a set of homogeneous decision-making units (DMUs). A critical feature of conventional DEA approaches is that only one or several sets of optimal virtual weights (or multipliers) are used to aggregate the ratio performance efficiencies, and thus, the efficiency scores might be too extreme or even unrealistic. Alternatively, this paper aims at developing a new performance dominance probability approach and applying it to analyze the banking operations in China. Towards that purpose, we first propose an extended eco-inefficiency model based on the DEA methodology to address banking activities and their possible relative performances. Since the eco-inefficiency will be obtained using a set of optimal weights, we further build a performance dominance structure by considering all sets of feasible weights from a data-driven perspective. Then, we develop two pairwise eco-inefficiency dominance concepts and propose the inefficiency dominance probability model. Finally, we illustrate the eco-inefficiency dominance probability approach with 32 Chinese listed banks from 2014 to 2018 to demonstrate the usefulness and efficacy of the proposed method. |
| format | Article |
| id | doaj-art-aa10bb849a4d45fd9562fcff590992d2 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-aa10bb849a4d45fd9562fcff590992d22025-02-03T06:05:16ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/37802323780232An Eco-Inefficiency Dominance Probability Approach for Chinese Banking Operations Based on Data Envelopment AnalysisFeng Li0Lunwen Wu1Qingyuan Zhu2Yanling Yu3Gang Kou4Yi Liao5School of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, ChinaSchool of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, ChinaCollege of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, ChinaSchool of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, ChinaSchool of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, ChinaSchool of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, ChinaData envelopment analysis (DEA) has proven to be a powerful technique for assessing the relative performance of a set of homogeneous decision-making units (DMUs). A critical feature of conventional DEA approaches is that only one or several sets of optimal virtual weights (or multipliers) are used to aggregate the ratio performance efficiencies, and thus, the efficiency scores might be too extreme or even unrealistic. Alternatively, this paper aims at developing a new performance dominance probability approach and applying it to analyze the banking operations in China. Towards that purpose, we first propose an extended eco-inefficiency model based on the DEA methodology to address banking activities and their possible relative performances. Since the eco-inefficiency will be obtained using a set of optimal weights, we further build a performance dominance structure by considering all sets of feasible weights from a data-driven perspective. Then, we develop two pairwise eco-inefficiency dominance concepts and propose the inefficiency dominance probability model. Finally, we illustrate the eco-inefficiency dominance probability approach with 32 Chinese listed banks from 2014 to 2018 to demonstrate the usefulness and efficacy of the proposed method.http://dx.doi.org/10.1155/2020/3780232 |
| spellingShingle | Feng Li Lunwen Wu Qingyuan Zhu Yanling Yu Gang Kou Yi Liao An Eco-Inefficiency Dominance Probability Approach for Chinese Banking Operations Based on Data Envelopment Analysis Complexity |
| title | An Eco-Inefficiency Dominance Probability Approach for Chinese Banking Operations Based on Data Envelopment Analysis |
| title_full | An Eco-Inefficiency Dominance Probability Approach for Chinese Banking Operations Based on Data Envelopment Analysis |
| title_fullStr | An Eco-Inefficiency Dominance Probability Approach for Chinese Banking Operations Based on Data Envelopment Analysis |
| title_full_unstemmed | An Eco-Inefficiency Dominance Probability Approach for Chinese Banking Operations Based on Data Envelopment Analysis |
| title_short | An Eco-Inefficiency Dominance Probability Approach for Chinese Banking Operations Based on Data Envelopment Analysis |
| title_sort | eco inefficiency dominance probability approach for chinese banking operations based on data envelopment analysis |
| url | http://dx.doi.org/10.1155/2020/3780232 |
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