Impact of COVID-19 on the Operational Efficiency and Competitiveness of Financial Holding Companies in Taiwan: A DEA and GRA Analysis

Abstract

This study analyzes the impact of the COVID-19 pandemic on the competitiveness of financial holding companies (FHCs) in Taiwan and uses Data Envelopment Analysis (DEA) to assess their operational efficiency from 2019 to 2022. Furthermore, the study applies the Grey Relational Analysis (GRA) model to deeply analyze the input factors affecting operational efficiency. The findings show that both Technical Efficiency (TE) and Pure Technical Efficiency (PTE) values exceeded 0.9, indicating that the increase in production factors had limited impact on total output. Scale Efficiency (SE) values consistently exceeded 0.95, emphasizing the importance of capital and labor inputs. In 2021, operational efficiency declined by 4% due to the pandemic; however, by 2022, FHCs regained competitiveness and achieved a 6% growth. Key factors influencing efficiency include total assets, workforce size, and operating costs. The study suggests that FHCs should focus on resource allocation, human resource management, and cost control to enhance operational effectiveness in the post-pandemic era.