Performance measurement of Taiwan's commercial banks Available to Purchase

Most previous studies concerning company performance evaluation focus merely on operational efficiency. Operational effectiveness, however, which might directly influence the survival of a company, is usually ignored. As a result, this paper presents a study which uses an innovative two‐stage data envelopment analysis model that separates efficiency and effectiveness to evaluate the performance of 41 listed corporations of the banking industry in Taiwan. The empirical result of this paper is that a company with better efficiency does not always mean that it has better effectiveness. There is no apparent correlation between these two indicators.