Z-ERM DEA integrated approach for evaluation of banks & financial institutes in stock exchange

Abstract

The purpose of this study is to evaluate efficiency and effectiveness of banks, financial and credit institutes active in stock and super-stock exchange organizations using new Fuzzy DEA model which is the modified, improved and enhanced version of Russell's measurement model. In order to make it more efficient, we used the Z-numbers theory through which the calculations of uncertainty in the decision-making process can be showed more accurately. To do so, the literature of this industry and financial data of the research companies during 2012–2017 were initially overviewed and 16 indicators (indices/indexes) and the main criteria related to their performance evaluation were selected. Afterward, the productivity of banks and financial and credit institutions in different levels of α − cut were specified and compared using integrated approach of ERM and calculations of Z-numbers as well as considering opinions provided by the financial experts with possibility of concurrent evaluation of the efficiency and effectiveness in a model.