A Comparison of Ratios and Data Envelopment Analysis: Efficiency Assessment of Taiwan Public Listed Companies
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 1
Abstract
The need to assess business firm’s efficiency is important for all players involved in a business. Efficiency assessment has previously been conducted using financial ratio analysis. However, it failed when simultaneously considering multiple inputs and outputs. Because of this difficulty the data envelopment analysis (DEA) is proposed as an alternative approach for handling multiple inputs and outputs. This study introduces financial ratio analysis and the DEA model for assessing performance and uses panel data of 24 Taiwan public listed companies to demonstrate the merit of the model in assessing efficiency with quantitative guidance for policy formulation.
Authors and Affiliations
Yaw-Shun Yu, Ambrosio Barros, Chih-Hung Tsai, Kuo-Hsiung Liao
Keywords
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- EP ID EP93900
- DOI 10.6007/IJARAFMS/v4-i1/586
- Views 132
- Downloads 0
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