A Network DEA Model with Super Efficiency and Undesirable Outputs: An Application to Bank Efficiency in China

Table 5

Definition of variables used to test the hypotheses.

Variable description	Definition	Hypothesis test
Net loan to total assets	𝑛𝑒𝑡𝑙𝑜𝑎𝑛_𝑡𝑎=netloantotalassets	“Risk taking”; (+)
Liquid assets to customer and ST funding	𝑙𝑖𝑞𝑎𝑠𝑠𝑒𝑡𝑠_𝑠𝑡𝑓𝑢𝑛𝑑=liquidassetscustomerdeposit+othershorttermfunding	“Assets liquidity”; (+)
Net interest margin	𝑛𝑒𝑡_𝑖𝑛𝑡_𝑚𝑎𝑟𝑔𝑖𝑛=interestincomeearningassets	“Interest margin”; (−)
Shareholder	Sharehold = 1 for foreign banks, 0 otherwise	“Shareholders behind”; (+)
List	List = 1 for publicly listed banks, 0 otherwise
Total assets	ln_ta = ln(totalassets)	“Scale effect”; (+)

Note: data comes from Bankscope database. All ratios are expressed in percentage points except defined specially. The expected coefficient signs at bank level are shown in parenthesis.