Abstract

ABSTRACTThis study uses resampling data envelopment analysis (DEA) to evaluate the performance of Taiwan’s financial institutions over the period 2012–2017. The results show that Tachin, Grand, CapitalFS, and Fubon are among the top 10 for good performance, but they present a larger confidence interval bias (I-bias), indicating their inputs and outputs are unstable, and thus these financial institutions must improve their overall business strategy. The insurance group (INSG) has higher efficiency than the financial holding group (FHG) and securities group (SECG) over the period 2012–2017, showing that its performance is relatively stable and that its future performance trends do not change much. The efficiencies of the groups exhibit very significant differences in higher and other of return on assets (ROA) and return on equity (ROE) via the Wilcoxon test. The business efficiency of INSG is the best and that of SECG is the worst. Overall, the government should provide a more prudent strategy to monitor the operations of SECG groups in order to reduce investors’ investment risk.

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