ORGANIZATIONAL PERFORMANCE ON BRAZILIAN BANK SECTOR: A DATA ENVELOPMENT ANALYSIS APPLICATION

ABSTRACT The organizational performance analysis is always something a matter of a lot of discussions. Questions on which indicators to use and how to consolidate them in way to establish a fair criteria of performance evaluation is present in several studies and in the companies’ daily routine. In this way that this work is proposed with a modeling proposal of this problem through the use of the Data Envelopment Analysis (DEA). A relative performance index that is capable to conjugate financial indicators of liquidity, cost, risk and profitability in the analysis of organizational performance is searched. In other words, the index of each company is an integrated combination of several performance vectors and it is function not only of its performance, but also of the performance of the other analyzed companies. The research sample were composed of banks of four segments: 20 retail banks, 34 wholesale banks, 21 middle market banking and 26 financing banks, that were in operation in Brazil in 2003, listed in the ranking of the Gazeta Mercantil - Balanço Financeiro Magazine about the performance of the best banks and other financial institutions. The results show that as much the giants as the small and middle institutions have total survival and competition conditions, because it is not the size that produces the competitiveness in the sector, but the superior performance.