The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework
This study aims to measure the effects of bank-specific factors on the efficiency of Pakistan's twenty-seven (27) commercial banks. Efficiency was computed by input-oriented data envelopment analysis approach under CRS (constant return to scale) and VRS (variable return to scale) assumptions. The results revealed that overall inefficiency in commercial banks was to tune of 10 percent and was caused by both managerial incompetence and uneconomical bank's size. However, the uneconomic scale size remained the dominant source of inefficiency at individual banks level, and most of the banks exhibited a decreasing return to scale (DRS) behaviour. Furthermore, efficiency scores were regressed by bank-specific factors using the Tobit regression model. Among the bank-specific factors, Profitability, liquidity, bank size had a significant and positive impact, while market share and Asset quality had a negative and substantial effect on all the efficiency parameters.
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ideology, textbooks, critical discourse
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(1) Farhat Ullah Khan
Assistant Professor, Department of Business Administration, Gomal University, Dera Ismail Khan, KP, Pakistan.
(2) Aman Ullah Khan
Assistant Professor, Department of Business Administration, Gomal University, Dera Ismail Khan, KP, Pakistan.
(3) Inayat Ullah
PhD Scholar, Department of Public Administration, Gomal University, Dera Ismail Khan, KP, Pakistan.
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Cite this article
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APA : Khan, F. U., Khan, A. U., & Ullah, I. (2019). The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework. Global Regional Review, IV(IV), 600-611. https://doi.org/10.31703/grr.2019(IV-IV).55
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CHICAGO : Khan, Farhat Ullah, Aman Ullah Khan, and Inayat Ullah. 2019. "The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework." Global Regional Review, IV (IV): 600-611 doi: 10.31703/grr.2019(IV-IV).55
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HARVARD : KHAN, F. U., KHAN, A. U. & ULLAH, I. 2019. The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework. Global Regional Review, IV, 600-611.
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MHRA : Khan, Farhat Ullah, Aman Ullah Khan, and Inayat Ullah. 2019. "The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework." Global Regional Review, IV: 600-611
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MLA : Khan, Farhat Ullah, Aman Ullah Khan, and Inayat Ullah. "The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework." Global Regional Review, IV.IV (2019): 600-611 Print.
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OXFORD : Khan, Farhat Ullah, Khan, Aman Ullah, and Ullah, Inayat (2019), "The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework", Global Regional Review, IV (IV), 600-611
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TURABIAN : Khan, Farhat Ullah, Aman Ullah Khan, and Inayat Ullah. "The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework." Global Regional Review IV, no. IV (2019): 600-611. https://doi.org/10.31703/grr.2019(IV-IV).55