Efficiency study using non parametric data envelopment analysis approach: the correlation with indonesian banking financial performance for the period before and during 2008 global financial crisis
Global financial crisis is an ongoing phenomenal from Subprime Mortgage Crisis. It is believed to hit financial and real sectors differently, with the latter incurred heavier damages. Through this research, the technical efficiency performance of Indonesian banking will be investigated using non parametric Data Envelopment Analysis (DEA) approach. Next, the selected input and output variables will be applied to the DEA for all selected banks.rnLater on, the scores will be analyzed accordingly with indicators such as the economic condition in Indonesia as well as the internal situation of the banks as a whole. Moreover, simple linear regression method will be conducted to find the correlation between technical efficiency scores with ROA, ROE, NIM, BOPO, LDR, and CAR. These ratiosrnportray financial performances differently. Several interesting findings have been found. There are various correlations between technical efficiency from DEA and the following ratios mention above for the whole banks and per category banks.
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