Improving the Banks Shareholder Long Term Values by Using Data Envelopment Analysis Model

Subject Areas : Multi-Criteria Decision Analysis and its Application in Financial Management

Mohammad Izadikhah ¹

1 - Department of Mathematics, College of Science, Arak Branch, Islamic Azad University, Arak, Iran P. O. Box: 38135/567

Received: 2018-02-09 Accepted : 2018-06-12 Published : 2018-06-01

Keywords: Financial Assessment, Data envelopment analysis, Efficiency, Returns to Scale, Banking,

Abstract :

Given the rapid development of the banking sector, it is reasonable to expect that the performance of banks has become the centre of attention among bank managers, stakeholders, policy makers, and regulators. In order to maximizing the share-holders’ satisfactory level, two bank efficiency measurement approaches, i.e. the production approach and the user cost approach, which are financial evaluations, are employed. The evaluations are done by means of data envelopment analysis method. The proposed methodology is run on the 15 privet bank branches in Markazi province. By using this approach, four regions that show the various performances are obtained. In addition the status of returns to scale for each bank branch is calculated.

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