Marketing and operational efficiency in a two-stage data envelopment analysis: the application of financial holding companies in Taiwan

This aim of the study was to explore Taiwan's main financial holding companies operating efficiencies; a two-stage model, which evaluated marketing and operational procedures of selected banks. The study period covered 2003-2006, using data envelopment analysis (DEA), to explore Taiwan Financial Holding Companies (FHC) for the main body of selected bank's operating efficiency. The results showed that large sized FHC banks were generally more efficient than the small ones in the marketing model. While small FHC banks were relatively poor in technical efficiency, they were improving the increase of returns to scale. Most large FHC banks are classified by star ratings indicating large FHC banks have better competitive power than the small ones.