Measuring Managerial Efficiency of the Financial Holding Companies in Taiwan - Applying the Malmquist Index and Co-Plot Approach

Abstract

Fourteen financial holding companies (FHCs) in Taiwan between 2004 and 2011 were applied as the research samples. The BCC model of Data Envelopment Analysis (DEA) was used to evaluate the scale efficiency (SE), and the Malmquist Index was further applied to the intertemporal efficiency analysis. The research result showed the leader was Shin Kong, followed by Fubon and Waterland whereas the followers were other FHCs including E.Sun, Taishin, and Jih Sun. In addition, through the two-dimensional graphic characteristics, the Co-Plot method was used to display the dynamic relationships among the FHCs and each variable.

Keywords:

• Financial holding company (FHC)
• Data Envelopment Analysis (DEA)
• scale efficiency (SE)
• Malmquist Index
• Co-Plot