"Efficiency evaluation of production units through Data Envelopment Analysis at banking sector"

Abstract

The subject of this doctoral dissertation is the issue of measuring the efficiency of financial institutions in the Visegrad Group (VG) countries. The main aim of the doctoral dissertation is to create and modify the basic CCR and BCC Data Envelopment Analysis (DEA) models and apply these new models to the financial sector of the VG countries in the reference time period 2005-2015. The fulfilment of the goal of the doctoral dissertation is closely related to the solution of four research questions which focus and solve problems or shortcomings of models and the environment of financial institutions in the VG countries. These problems include the lack of data (e.g., the problem of missing values in a number of input and output variables), the problem of clearly defining variables as input or output variables or the use of risk variables that help to better illustrate the financial institutions' environment and offset differences between VG countries. Finally, the answer to the question is sought, whether an alternative productive index (Hicks index) is more suitable than a traditional productive index (Malmquist index) for a given specific area.

The creation and modification of models took place in analogously with defined research questions as well as their mathematical application. More precisely, an analysis of basic DEA models with different types of input and output variables had been performed first (both in terms of defining inputs and outputs, and the possibility of replacing the missing variables). On the basis of the analyses, the best model was determined, and it was further tested and modified by using the dual variable and the risk variable. All models were applied, verified and the best model was subsequently used as the basis for the Hicks and Malmquist index. These indices have been compared and found to give a better description of given area.

The result of the doctoral dissertation is two new models, which should correspond to the conditions and needs of financial institutions in the VG countries. They should measure the efficiency better. This means providing a more accurate and deeper analysis in the area. It can help to these institutions to find their weaknesses and improve them in future.