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Original scientific paper

https://doi.org/10.1080/1331677X.2019.1656096

Evaluating the criteria for financial holding company operating ability based on the DEMATEL approach–the case of Taiwan

Min-Yen Chang ; Jiaxing University, Jiaxing, China
Xiaozhong Cui ; Jiaxing University, Jiaxing, China
Chun-Chu Liu ; Chang Jung Christian University, Tainan, Taiwan
Yu-Ti Lai ; Chang Jung Christian University, Tainan, Taiwan


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Abstract

Evaluating criteria selection has significant impacts on data envelopment analysis (DEA) efficiency estimates. Selecting the proper evaluation criteria lead to successful and meaningful results of decision-making. This study aims to use the Decision Making Trial and Evaluation Laboratory (DEMATEL) method to evaluate the most important constructs and criteria and also establish causality relationships among others for financial holding companies (FHCs) of banks’ operating ability in Taiwan. In this research 15 criteria were confirmed through reviewing various articles associated with this issue. Then, the information from the questionnaire was turned into the DEMATEL questionnaire and was distributed among nine experts and also members of the FHCs of Taiwan. The research results show that employees, total assets, total liabilities, non-interest income, income on investments, net profits before tax, net worth, and EPS are eight causal criteria. Furthermore, operating expenses, capital, interest expenses, interest income, operating income, return on assets (ROA), and return on equity (ROE) are seven effect criteria.

Keywords

data envelopment analysis (DEA); Decision Making Trial and Evaluation Laboratory (DEMATEL); financial holding company (FHC); decision-making

Hrčak ID:

229623

URI

https://hrcak.srce.hr/229623

Publication date:

22.1.2019.

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