A DEA and random forest regression approach to studying bank efficiency and corporate governance

We employ Data Envelopment Analysis to estimate the new technical, cost, and profit efficiency of Indian banks over period 2008–2018. Then, we use Random Forest Regression examine impact corporate governance (Board Size, Board Independence, Duality, Gender Diversity, Meetings), bank characteristics (Return on Assets, Equity Total Assets), other (Ownership Years) efficiency. Among others, found that board play a significant role particularly in efficiency; therefore, policymakers regulators should consider Meetings, Duality while framing guidelines for enhancing also Independence plays vital cost efficiency, Diversity contributes both technical This study makes methodological contributions by employing Machine Learning based tandem with under two-phase model which is pioneering attempt.