A new inverse data envelopment analysis model for mergers with negative data

2016 ◽  
pp. dpw016 ◽  
Author(s):  
Gholam R. Amin ◽  
Saeed Al-Muharrami
2016 ◽  
Vol 16 (04) ◽  
pp. 1043-1068 ◽  
Author(s):  
Wei-Hsin Kong ◽  
Tsu-Tan Fu ◽  
Ming-Miin Yu

This paper develops a range directional distance data envelopment analysis (DEA) model to simultaneously deal with the problems of negative data and undesirable outputs in the study of performance measurement with two-stage DEA. We report on the development of this model to handle both positive and negative data in a DEA framework and accommodate the problem of undesirable intermediate outputs in the first stage of operational processes. Unlike previous two-stage DEA models we allow for a nonuniform abatement factor imposing on stage 1’ production technology. Such a model is then applied to evaluate Taiwanese bank efficiencies both at the operational stage and profitability stage in banking activities based on a data set consisting of 35 domestic banks in Taiwan in the period 2007. The results indicate that, by the range directional two-stage data envelopment analysis model, the operational efficiency was smaller than the profitability efficiency. Many banks generated too many performing loans in which independent banks should reduce more performing loans than financial holding company subsidiary banks. Both the ratio of investments to loans and the ratio of nonperforming loans to performing loans did not have significant contributions to the efficiency. This paper is able to provide information for bank operators and researchers on the managerial and strategic implications of how negative data and undesirable outputs affect efficiency and how to measure efficiency appropriately.


2021 ◽  
Vol 12 (2) ◽  
pp. 422-438
Author(s):  
Tugba Polat ◽  
Safak Kiris

In today's competitive environment, enterprises should use their resources correctly; they should continuously improve themselves and work efficiently. It is important to evaluate the performances of the units under the same conditions in enterprises according to each other, to see the current situations and to determine appropriate improvements in necessary points. One of the commonly used approaches to performance evaluation is Data Envelopment Analysis. Many approaches have been developed for the Data Envelopment Analysis model, and Goal programming using in multi-objective decision making solutions approaches is one of them. Goal Programming gives decision-makers the opportunity to evaluate many objectives together in the decision-making process. In this study, classical Data Envelopment Analysis and weighted goal programming approach for multi-criteria data envelopment analysis model was applied in the evaluation process of the projects worked in an automotive supplier industry. A knowledge system has also been proposed in order to evaluate the effectiveness of the projects periodically and to include new projects or conditions into the evaluation.


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