TITLE:
The Study of Chinese Listed Bank’s Efficiency Growth Mode in Internet Finance Era—Based on Full-Combination DEA-PCA Model
AUTHORS:
Jianwen Qin, Tao Wang, Bangding Huang
KEYWORDS:
Internet Finance, Full-Combination DEA-PCA Model, Efficiency Growth Model
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.6 No.11,
November
17,
2016
ABSTRACT: In the
era of internet finance, the scholars and practitioners around the world are
paying attention to how to enhance the competitiveness of commercial banks by
choosing the appropriate growth pattern of business performance. This paper
uses empirical research to discuss the growth model of business performance
within 16 listed commercial banks in China by full-combination DEA-PCA model. We
find that there are significant differences on the performance evaluation of
each listed bank due to whether they consider internet factor or not. Furthermore,
we apply PCA model which is based on the result of full-combination DEA model
to classify the growth pattern of business performance into “Internet Business
Oriented” which enhances performance by internet finance innovation and
“Traditional Business Oriented” which maintains performance by traditional
banking business. According to the performance of each listed bank in the PCA
analysis chart, we classify these banks further into four groups: “Emphasis on
internet business”, “Emphasis on traditional business”, “Emphasis on internet
business with overburdened traditional business” and “Balance between internet
business and traditional business”. Each group of banks has its own strength
and weakness. At last, according to the characteristics of different bank groups,
we put forward the corresponding efficiency strategy recommendations.