Journal ArticleDOI
Is there a trade-off between social and financial performance of public commercial banks in India? A multi-activity DEA model with shared inputs and undesirable outputs
Reads0
Chats0
TLDR
In this article, the authors measured the social and financial efficiency of a sample of 26 Indian public banks over 2011-2014 by using an innovative Multi-activity Data Envelopment Analysis (MDEA) model with shared inputs and undesirable outputs.Abstract:
Indian public commercial banks play a crucial role in the financial support for the economic development, poverty alleviation, and women's empowerment. As social banks, they have dual performance objectives of financing the vulnerable sections of society as well as providing mainstream financial services. Balancing these twin missions is the biggest challenge for these hybrid enterprises. To date, no study has been published giving evidence on whether these banks are efficient in both facets of their dual goals. For this reason, this paper adds to the literature by measuring the social and financial efficiency of a sample of 26 Indian public banks over 2011–2014 by using an innovative Multi-activity Data Envelopment Analysis (MDEA) model with shared inputs and undesirable outputs. Our study also examines whether there is a conflict or trade-off between socially responsible and for-profit banking practices. We find that Indian public banks have managed their dual mission relatively well, but on average, they have been much more efficient in social (99.4%) than conventional banking (81.9%) activity. Moreover, this study shows a significant synergy effect between social and financial performance. However, when regional differences across India are considered by comparing the social and financial efficiency scores for different degrees of economic and human development in Indian states, the significant synergy effect is only confirmed in those public banks located in less more economically developed Indian states.read more
Citations
More filters
Journal ArticleDOI
Is the photovoltaic poverty alleviation project the best way for the poor to escape poverty? ——A DEA and GRA analysis of different projects in rural China
TL;DR: Li et al. as discussed by the authors analyzed the contribution of solar photovoltaic poverty alleviation project (PPAP) efficiency in TPA via data envelopment analysis (DEA) and grey relation analysis (GRA).
Journal ArticleDOI
Impact of mission statement components on social enterprises’ performance
TL;DR: In this paper, the authors investigate the link between mission statements and performance in social enterprises and find that those firms for which the mission statement explicitly considers the customers and the product/service offer are more likely to exhibit higher economic performance.
Journal ArticleDOI
Better with age? The relationship between longevity and efficiency dynamics of nonprofit microfinance institutions
TL;DR: In this article, the authors investigated the relationship between longevity and efficiency dynamics of nonprofit micro-finance institutions over the 2005-2014 period using a dynamic data envelopment analysis framework that considers the effect of carryover activities between two consecutive time periods.
Journal ArticleDOI
The Social Efficiency for Sustainability: European Cooperative Banking Analysis
TL;DR: In this paper, the type effect between economic efficiency and social efficiency is analyzed to analyze the sustainability of banking in Europe, and it is shown that there is no single model of social and economic efficiency according to the type of financial entity in Europe.
Posted Content
Efficiency Measurements in Multi-activity Data Envelopment Analysis with Shared Inputs: An Application to Farmers’ Organizations in Taiwan
TL;DR: In this article, a multi-activity DEA model with variable returns to scale is proposed to provide information on the efficiency performance of organizations with inputs shared among several closely-related activities, applied to study the case of 279 farmers' cooperatives in Taiwan.
References
More filters
Journal ArticleDOI
Measuring the efficiency of decision making units
TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
Journal ArticleDOI
Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis
TL;DR: The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs as mentioned in this paper.
Journal ArticleDOI
A procedure for ranking efficient units in data envelopment analysis
TL;DR: In this paper, a modified version of DEA based upon comparison of efficient DMUs relative to a reference technology spanned by all other units is developed, which provides a framework for ranking efficient units and facilitates comparison with rankings based on parametric methods.
Book
Theory of cost and production functions
TL;DR: In this article, a unified treatment of cost and production functions underlie the economic theory of production is presented, and the duality between cost function and production function is developed by introducing a cost correspondence, showing that these two functions are given in terms of each other by dual minimum problems.