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Mathematical Problems in Engineering
Volume 2014, Article ID 949717, 7 pages
Research Article

Commercial Bank Efficiency Evaluation in Consideration of the Undesirable Output and Its Link with Stakeholders Relationship: An Application of China’s Commercial Banks

School of Economics, Ocean University of China, No. 238 Songling Road, Laoshan District, Qingdao 266100, China

Received 27 December 2013; Revised 5 March 2014; Accepted 7 April 2014; Published 30 April 2014

Academic Editor: Jianping Li

Copyright © 2014 Jianyue Ji and Yanxia Wang. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


Based on the modern contract theory, expectancy theory, and stakeholder theory, this paper analyzes how stakeholders relationship influences the efficiency of commercial banks and finds that the efficiency is a function of stakeholders relationship. A DEA model with Seiford's linear transformation function is developed to evaluate the efficiency in consideration of the undesirable output. The panel Tobit model is established to conduct empirical research with data of 14 Chinese commercial banks from 2004 to 2012. The study finds that except for business customer relation, stakeholder relationship is the key variable that influences comprehensive efficiency of commercial banks.