Commercial Bank Efficiency Evaluation in Consideration of the Undesirable Output and Its Link with Stakeholders Relationship: An Application of China’s Commercial Banks
Table 3
Definition of variables.
Variables
Symbol
Description
Computational formula
Explained variable
Efficiency
Commercial bank efficiency
DEA evaluation
Explanatory variable
Stakeholder relation
Return on equity
Net profit/owner’s equity
Employee relation
Ratio of cash paid for employee
Cash paid to and for employees/total assets
Creditor relation
Interest expense rate
Interest expense/total liability
Business customer relation
Interest income rate
−Interest income/loan offer and advance money1
Regulator relation
Capital adequacy ratio
Capital/risk assets
Control variable
Bank scale
Total assets
Total assets standardization
Ownership structure
Ownership
Dummy variable
As the business customer relation is a negative index, the negative value of interest income ratio is used here for the consistency of the follow-up measurement results and empirical analysis.
