Evaluation of the Effective Factors on Profit Efficiency in Branches of Sina Bank

Reza Tehrani, Hamid Pezeshk, Hamid Reza Iravani


The present research investigates the profit efficiency in branches of Sina Bank and the factors which affect it. In order to investigate the profit efficiency in branches of Sina Bank, a two-phase method is applied in this research. The Stochastic frontier analysis and Cobb-Douglas Profit Function were used in the first phase. In order to evaluate the relationship between independent variables and the efficiency obtained in the first phase, simple linear regression was applied in phase two. Independent variables in the present research include the average granted loans, the price of financial capital and profit efficiency of branches. There is also a negative relationship between labor force and profit efficiency of branches. No significant relationship was observed between other independent variables and the dependent one.


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