An analysis of Korean bank performance using chance-constrained data envelopment analysis

Document Type


Department or Administrative Unit

Finance and Supply Chain Management

Publication Date



For measuring the performance of firms using data envelopment analysis (DEA), many studies assume that inputs and outputs are deterministic. For example, key indicators for financial institutes such as assets, deposits, number of employees and profits vary over time. Nonetheless, researchers take snapshots of these numbers and analyse them for performance measurement and benchmarking. Similarly, it is not an exception for the studies with DEA for Korean financial institutes. We allow inputs and/or outputs to be stochastic and analyse the comparative performance of Korean banks. We found that large or top five banks were inconsistent sensitivity on the variability of inputs and/or outputs across models. The contributions of our study include demonstrating DEA analysis using stochastic inputs and outputs for the Korean banks and providing realistic insights to the managers of the banks.


This article was originally published in International Journal of Operational Research. The full-text article from the publisher can be found here.

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International Journal of Operational Research


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