Comparison criteria for investment selection: A non-parametric analysis in the Banking Sector for the period 1999-2001, Review of Economic Science 5: 127-148, 2004 (JEL Listed) (2004, in common with D. Salamouris)

Comparison criteria for investment selection: A non-parametric analysis in the Banking Sector for the period 1999-2001, Review of Economic Science 5: 127-148, 2004 (EconLit Listed). In common with D. Salamouris (2004).

This study explores the relative efficiency of the Greek Banks, which are members of the Athens Stock Exchange Market. Our task is to redefine the optimal criteria for investment decisions for the time period 1999 –3/2001. For this purpose a non-parametric analytic technique (DEA) is employed for the measurement of efficiency. The derived results indicate the non efficient as well as the efficient banks for the time period under consideration. Specifically, the efficient banks are compared with the non-efficient ones and a measure of their relative efficiency is derived. The main conclusion is that the use of specific sector (in our case banking) ratios as criteria for the evaluation of comparative efficiency for a homogeneous sample of decision making units, result to a more reliable tool for the evaluation of performance compared to the commonly used investment ratios.

JEL Classification: C6; C2