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A Model for the Relative Efficiency of Commercial Banks in the Iraqi Stock Market Using Data Envelopment Analysis Method
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Sohrab Osta1   , Hossein Atiye Hossein2 |
1- Assistant Professor, Ministry of Science, Research and Technology & Ilam University , s.osta@ilam.ac.ir
2- Master's degree, Ministry of Science, Research and Technology & Ilam University |
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Abstract: (424 Views) |
Purpose: The purpose of this study is to investigating the relative efficiency of commercial banks in the Iraqi Stock Market using Data Envelopment Analysis method.
Design/methodology/approach: Commercial banks in the Iraqi stock market were used to test the hypotheses. The final sample covers 11 banks between 2015 and 2022. In this model of data envelopment analysis, the hypothetical unit that is on the efficiency limit is called the virtual unit. The value of λ indicates the combination of reference units used to make the virtual unit of each unit. Then, the amount of excess input in each of the inefficient units and the amount of output deficiency in each of the inefficient units are calculated. Finally, the target values, which are the optimal input and output values, are calculated.
Findings: The proposed model that was applied to commercial banks in the Iraqi stock market in the desired period of time, adopts a limited approach to target unit weights for DEA which resulted in the target values that is the optimal values of inputs and outputs.
Originality/value: In the banking sector, the relationship between inputs and outputs is complex. Therefore, by strategic selecting, the optimal weights of the input and output, we can optimizing the efficiency of the decision units (DMU). This method effectively examines the complexities related to the inputs and outputs of homogeneous units using conventional data envelopment analysis (DEA) models to evaluate the efficiency of these units. In addition, this paper further advances the literature by examining the relative efficiency of commercial banks in the Iraqi stock market in the context of the emerging market, Iraq.
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Article number: 17 |
| Keywords: Efficiency, Commercial banks, Data Envelopment Analysis Method, Decision making unit |
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Full-Text [PDF 1166 kb]
(145 Downloads)
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Article type: Research |
Subject:
Special
Received: 2024/08/17 | Accepted: 2024/11/28 | Published: 2024/12/30
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