financial assessment of banks and financial institutes in stock exchange by means of an enhanced two-stage dea model

A stock exchange is an entity that provides ‘‘trading’’ facilities for stock brokers and traders to trade stocks and other securities. how to invest in stock exchange is one of the important issues in investment, and one of the factors that can help investors in the process of investment is the efficiency of the corporation under consideration. data envelopment analysis is a mathematical methodology that has been widely applied to assess the performance of banks and financial institutes. the main feature of this methodology evaluating firms by considering multiple inputs and outputs. conventional dea models consider each firm as a black box and does not note into the inner activities. two-stage data envelopment analysis has been applied by several authors that evaluate each firm by considering the inner operations. this paper proposes a new two-stage bam model and further evaluates the banks and financial institutes in the tehran stock exchange by considering the financial ratios.