Paper Title
The Efficiency Evaluation Of Taiwan Security Companies Before And After The 2008 Financial Crisis: An Application Of The Metafrontier Malmquist Productivity Index
Abstract
This study focuses on how the difference of the before and after the 2008 Financial Crisis impacts efficiency of Taiwan security companies. We employ Metafrontier Malmquist Productivity index (MMPI) model of Oh and Lee (2010) to discuss business performance of the different kinds of security companies. In addition, as financial holding company (FHC) securities, non-financial holding company (non-FHC) securities and foreign company (FC) securities face difference in frontier, we use the concept of efficiency gap, proposed by Battese and Rao (2002) to conduct further analysis. The results show on average after the Financial Crisis impacts: First, FHC securities are better than non-FHC securities and FC securities in efficiency change (EC), the scores is 1.004. Second, FC securities are better than FHC securities and non-FHC securities in technical change (BPC),the scores is 1.043.It shows that FC securities equivalent to the technical progress. Finally, FC securities are better than FHC securities and non-FHC securities in technology leadership change (TGC),the scores is 1.011.It shows that FC securities approach to metafrontier, so its performance is better and represent technology leadership.
Keywords - Performance Evaluation, Metafrontier Malmquist Productivity Index (MMPI), Securities Companies.