A DEA-TOPSIS approach for ranking credit institutions

Autor: Mohammad Ehsani, Abolfazl Danaei
Jazyk: angličtina
Rok vydání: 2014
Předmět:
Zdroj: Management Science Letters, Vol 4, Iss 9, Pp 2071-2076 (2014)
Druh dokumentu: article
ISSN: 1923-2934
1923-9343
DOI: 10.5267/j.msl.2014.8.014
Popis: Measuring the relative efficiency of financial units plays essential role for making strategic decisions such as business development, downsizing, etc. This paper presents an empirical investigation to rank different branches of a credit institution named Samen in city of Semnan, Iran. The proposed study uses data envelopment analysis (DEA) for measuring the relative efficiency of 17 units. The results indicate that five units were efficient and using Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), the efficient units are ranked based on some inputs/outputs. The results of this study indicate that most branches of this financial unit performed poorly and a restructure in their businesses is necessary. In addition, the study has provided some evidences that considering employee wage, bank deposit and administration expenses as inputs for DEA implementation seems to provide better results than using total assets and equities.
Databáze: Directory of Open Access Journals