Overall performance of Australian banks and its relationship to total shareholder return

This paper introduces four dimensions of overall performance namely; profitability, growth, efficiency and marketability to measure the overall performance of Australian banks. Data Envelopment Analysis (DEA) as a nonparametric technique is used to examine the overall performance of four large and three small banks over the period 2001-2010. The result indicates a decline in the average of the overall performance in the last five years in comparison to the first half of the period. An attempt also is made to investigate the relationship between these results and the total shareholder return (TSR). This study found that the overall performance and TSR are positively correlated, especially; this correlation is stronger for the four major banks