Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals

2020 ◽  
Vol 27 (9) ◽  
pp. 2521-2536
Author(s):  
Ahmed Mohamed Habib ◽  
Tamer Mohamed Shahwan
Keyword(s):  
Data Envelopment Analysis ◽  
The United States ◽  
Decision Makers ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Mena Region ◽  
Financial Efficiency ◽  
Content Type ◽  
Factors Affecting ◽  
Dea Approach

PurposeThe efficient use of organizational resources is integral to the existence of prime firms. This study, using Malmquist data envelopment analysis (DEA), aims to assess in the level of operational and financial efficiency and its determinants for ensuring and sustaining excellent performance in 33 Egyptian private hospitals.Design/methodology/approachThis study adopted a Malmquist DEA approach to assess the changes in operational and financial efficiency in Egyptian hospitals. Tobit regression was also used to identify the significant variables affecting their efficiency. In addition, a sensitivity analysis is carried out for model validations.FindingsOut of 33 hospitals, 17 were found inefficient due to the decline in their technical efficiency. Moreover, the total value of the software programs and operational expenses and the total number of employees are common factors affecting both operational and financial efficiency. In addition, the number of physicians significantly affects the hospital's financial efficiency.Practical implicationsThe study sheds light on the value of using DEA to assess efficiency. DEA in the context of emerging economy such as Egypt's can be a useful tool for decision-makers and practitioners in identifying and addressing performance weaknesses and thus supports continuous improvement in performance.Originality/valueSeveral studies have adopted the DEA approach to assess the overall efficiency of hospitals in Europe and the United States. However, in the MENA region, these studies are uncommon. This study is thought to be one of the earliest attempts to assess hospitals' efficiency in Egypt.

Financial efficiency of commercial banks listed in Egyptian stock exchange using data envelopment analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Abdelrahman Kamel ◽  
Mohamed El-Sayed Mousa ◽  
Randa Mohamed Hamdy
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Financial Efficiency ◽  
Content Type ◽  
Egyptian Stock Exchange

PurposeThis study used data envelopment analysis (DEA) models to measure financial efficiency of twelve commercial banks listed in the Egyptian stock exchange (CBLSE), along with evaluating changes to the financial efficiency during the period 2017–2019.Design/methodology/approachThe study used BCC-I, cross-efficiency, super-efficiency models, and Malmquist productivity index (MPI) to assess financial efficiency of the examined banks. The available data from both inputs and outputs were analyzed using R. studio V.I.3. 1056 software.FindingsOut of twelve banks examined, only four banks were efficient under BCC-I model over different years of the study period; however, only one bank (CIB) appeared to be the most efficient compared to other peers in the study sample. Moreover, MPI results revealed decreased financial efficiency during the study period, due to the decreased technological innovation, except for HDB. Tobit regression results confirmed that total assets and total equity are significant factors impacted financial efficiency of CBLSE.Practical implicationsThis study sheds light on the importance of evaluating financial efficiency of CBLSE to all stakeholders, to pinpoint weaknesses in banks' performance, and for evaluating financial policies and investment decisions.Originality/valueSeveral studies sought to implement different models of DEA to assess banking performance in different regions of the world, but very few studies examined financial efficiency of banks. To the best of authors’ knowledge, this study is one of those few that addressed financial efficiency of banks in Egypt.

Benchmarking aircraft maintenance performances using data envelopment analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas O'Neal ◽  
Hokey Min ◽  
Daniel Cherobini ◽  
Seong-Jong Joo
Keyword(s):  
Data Envelopment Analysis ◽  
Ad Hoc ◽  
Aircraft Maintenance ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Content Type ◽  
Factors Affecting ◽  
Comparative Efficiency ◽  
Tobit Regression Analysis ◽  
Maintenance Performance

PurposeThe authors employed the three different versions (Charnes–Cooper–Rhodes, Banker–Charnes–Cooper and slack-based measure of efficiency) of data envelopment analysis (DEA) to evaluate the comparative efficiency/inefficiency of aircraft maintenance performance during the previous 41 months in United States Air Force (USAF). As a complimentary tool, the authors also adopted Tobit regression analysis to identify factors affecting efficiencies and inefficiencies.Design/methodology/approachThis paper aims to measure the relative efficiency of maintenance performances for a type of USAF aircraft in an effort to enhance aviation safety and combat readiness.FindingsThrough this study, the authors have two noteworthy findings. These are (1) an increased number of “cannibalization” (extracting necessary parts from the existing aircraft) practices tended to reduce maintenance efficiency; (2) The number of mission-capable aircraft turned out to be the most important factor for maintenance performance efficiency.Originality/valueThis paper is one of the first studies on aircraft maintenance that considered popular but neglected cannibalization practices as a new variable for assessing the maintenance efficiency. In addition, this paper is one of the few studies that performed a post-ad hoc analysis as a follow-up to DEA analysis.

Environmental efficiency of Xiangjiang River in China: a data envelopment analysis cross-efficiency approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qingxian An ◽  
Zhaokun Cheng ◽  
Shasha Shi ◽  
Fenfen Li
Keyword(s):  
Information Technology ◽  
Data Envelopment Analysis ◽  
Environmental Performance ◽  
Environmental Efficiency ◽  
Data Envelopment ◽  
Efficiency Measure ◽  
Tobit Regression ◽  
Xiangjiang River ◽  
Content Type ◽  
Exogenous Factors

PurposeEnvironmental performance becomes a key issue for the sustainable development. Recently, incremental information technology is adopted to collect environmental data and improve environmental performance. Previous environmental efficiency measures mainly focus on individual decision-making units (DMUs). Benefited from the information technology, this paper develops a new environmental efficiency measure to explore the implicit alliances among DMUs and applies it to Xiangjiang River.Design/methodology/approachThis study formulates a new data envelopment analysis (DEA) environmental cross-efficiency measure that considers DMUs' alliances. Each DMUs' alliance is formulated by the DMUs who are supervised by the same manager. In cross-efficiency evaluation context, this paper adopts DMUs' alliances rather than individual DMUs to derive the environmental cross-efficiency measure considering undesirable outputs. Furthermore, the Tobit regression is conducted to analyze the influence of exogenous factors about the environmental cross-efficiency.FindingsThe findings show that (1) Chenzhou performs the best while Xiangtan performed the worst along Xiangjiang River. (2) The environmental efficiency of cities in Xiangjiang River is generally low. Increasing public budgetary expenditure can improve environmental efficiency of cities. (3) The larger the alliance size, the higher environmental efficiency. (4) The income level is negatively correlated with environmental efficiency, indicating that the economy is at the expense of the environment in Xiangjiang River.Originality/valueThis paper contributes to developing a new environmental DEA cross-efficiency measure considering DMUs' alliance, and combining DEA cross-efficiency and Tobit regression in environmental performance measurement of Xiangjiang River. This paper examines the exogenous factors that have influences on environmental efficiency of Xiangjiang River and derive policy implications to improve the sustainable operation.

Measuring operational efficiency of isolation hospitals during COVID-19 pandemic using data envelopment analysis: a case of Egypt

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Abdelrahman Kamel ◽  
Mohamed El-Sayed Mousa
Keyword(s):  
Data Envelopment Analysis ◽  
Design Methodology ◽  
Operational Efficiency ◽  
Data Envelopment ◽  
Allocation Of Resources ◽  
Tobit Regression ◽  
Health Crisis ◽  
Content Type ◽  
Dea Analysis ◽  
Using Data

PurposeThis study used Data Envelopment Analysis (DEA) to measure and evaluate the operational efficiency of 26 isolation hospitals in Egypt during the COVID-19 pandemic, as well as identifying the most important inputs affecting their efficiency.Design/methodology/approachTo measure the operational efficiency of isolation hospitals, this paper combined three interrelated methodologies including DEA, sensitivity analysis and Tobit regression, as well as three inputs (number of physicians, number of nurses and number of beds) and three outputs (number of infections, number of recoveries and number of deaths). Available data were analyzed through R v.4.0.1 software to achieve the study purpose.FindingsBased on DEA analysis, out of 26 isolation hospitals, only 4 were found efficient according to CCR model and 12 out of 26 hospitals achieved efficiency under the BCC model, Tobit regression results confirmed that the number of nurses and the number of beds are common factors impacted the operational efficiency of isolation hospitals, while the number of physicians had no significant effect on efficiency.Research limitations/implicationsThe limits of this study related to measuring the operational efficiency of isolation hospitals in Egypt considering the available data for the period from February to August 2020. DEA analysis can also be an important benchmarking tool for measuring the operational efficiency of isolation hospitals, for identifying their ability to utilize and allocate their resources in an optimal manner (Demand vs Capacity Dilemma), which in turn, encountering this pandemic and protect citizens' health.Originality/valueDespite the intensity of studies that dealt with measuring hospital efficiency, this study to the best of our knowledge is one of the first attempts to measure the efficiency of hospitals in Egypt in times of health' crisis, especially, during the COVID-19 pandemic, to identify the best allocation of resources to achieve the highest level of efficiency during this pandemic.

Analisis Efisiensi Teknis Multi-Stage Menggunakan Data Envelopment Analysis (DEA) dan Regresi Tobit pada Usahatani Bawang Merah, Studi Kasus di Desa Torongrejo, Kecamatan Junrejo, Kota Batu, Jawa Timur

2021 ◽  
Vol 5 (4) ◽  
pp. 1191-1205
Author(s):  
Ryan Winarso ◽  
◽  
Syafrial Syafrial ◽  
Wiwit Widyawati
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Production Efficiency ◽  
Formal Education ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Factors Affecting ◽  
Profitability Analysis ◽  
Production Value

Shallot has the highest production value in Indonesia. High production value indicates that shallot is an important commodity, therefore, its potential must be improved. Technical efficiency analysis can be used to measure production efficiency and possible input reduction to maximize the production potential of shallot. The chosen location for this research is Torongrejo Village Batu City, East Java. Shallot productivity value of Batu City is comparable to other central shallot production areas in East Java. The purpose of this research is to understand the farming system and production efficiency of shallot alongside with socio-economics factors affecting its efficiency level. Research method used in this research consists of: profitability analysis of shallot farming, analysis using Data Envelopment Analysis (DEA) to analyze the technical efficiency of shallot production, and Tobit regression to analyze socio-economics factors affecting technical efficiency level. The results from the analyses shows that shallot farming in Torongrejo Village has the R/C ratio of 2,09, with the DEA-CRS technical qfficiency value of 87,7 percent, DEA-VRS technical efficiency value of 99 percent and scale efficiency value of 88,6 percent. The result from Tobit regression using DEA-VRS as dependent variable shows that farming experience and formal education has positive and significant effect on technical efficiency (TE) level, and land ownership status has negative and significant effect on TE level. Shallot production efficiency can be increased by using reduced inputs therefore able to increase farming profit while keep improving farmers’ education and agriculture extension programs for the next generation of farmers.

scholarly journals Assessment of Performance of Pharmaceutical Firms making Drugs for Specific Diseases Prevalent in India: A Data Envelopment Analysis Approach

2013 ◽  
Vol 6 (2) ◽  
pp. 763-775 ◽  
Author(s):  
Sumanta Das ◽  
G.N Patel
Keyword(s):  
Data Envelopment Analysis ◽  
Delphi Technique ◽  
Analysis Approach ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Assessment Of Performance ◽  
Pharmaceutical Firms ◽  
Dea Approach

There exists a lot of diversity in Indian pharmaceutical environment in various aspects. We have applied Delphi Technique to arrive at specific prevalent diseases in India and identified 24 pharmaceutical firms making drugs for these diseases. We used data envelopment analysis (DEA) approach to find out the efficiency of firms and peers of inefficient firms. Tobit regression has been used to get the determinants of efficiency.

scholarly journals Determinants of tomato farmers efficiency in Mymensingh district of Bangladesh: Data Envelopment Analysis approach

2018 ◽  
Vol 16 (1) ◽  
pp. 93-97 ◽  
Author(s):  
Sandip Mitra ◽  
Muhammad Yunus
Keyword(s):  
Data Envelopment Analysis ◽  
Sampling Technique ◽  
Data Envelopment ◽  
Tobit Regression ◽  
High Yielding Variety ◽  
Factors Affecting ◽  
Input Use ◽  
Measuring Efficiency ◽  
Negative Effect ◽  
Education Training

Tomato is one of the major vegetables in Bangladesh that experienced massive productivity growth after independence. Nevertheless, farmers are struggling to find out optimal input combination in their farm that causes inefficient input use. Therefore, this study estimated the factors affecting efficiency of tomato farmers in Mymensingh of Bangladesh. Input oriented Data Envelopment Analysis (DEA) was employed for measuring efficiency while Tobit regression model was used to estimate the factors affecting efficiency. A total of 60 tomato farmers were selected using random sampling technique. Mean technical efficiency for tomato farmers was 0.83 implies that tomato farmers can reduce their input use by 17%. Education, training and high yielding variety adoption had positive effect on efficiency while age of tomato farmer’s had negative effect on efficiency. Efficiency increased with the farmer’s education, training and variety adoption. Farmer’s adopting local high yielding variety was more efficient than that of exotic high yielding variety. In addition, efficiency of farmers reduced with their age. Improvement of tomato farmer’s efficiency is possible if farmers received education, training and local high yielding variety.J. Bangladesh Agril. Univ. 16(1): 93-97, April 2018

scholarly journals Efisiensi Teknis Usahatani Kentang di Kabupaten Gowa Sulawesi Selatan

2021 ◽  
Vol 11 (1) ◽  
pp. 65-74
Author(s):  
Ahsanah Mukarromah Arifin ◽  
Anna Fariyanti ◽  
Netti Tinaprilla
Keyword(s):  
Data Analysis ◽  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Purposive Sampling ◽  
South Sulawesi ◽  
Dea Approach

One of the ways to increase production was increasing technical efficiency. The purpose of this research was to analyze technical efficiency and factors that affected technical efficiency in Tinggimoncong District, Gowa Regency, South Sulawesi. This research used purposive sampling with 50 potatoes farmers. This study used Data Envelopment Analysis (DEA) approach and Tobit regression for data analysis. The result of the study showed that there are 23 farmers of the respondents stated to be efficient or about 46 per cent of the total respondents studied. Factors that significantly influence the technical efficiency of potato farming were education and income outside of farming.    

scholarly journals EFISIENSI TEKNIS USAHATANI JAGUNG MANIS DI DESA GUNUNG MALANG KECAMATAN TENJOLAYA KABUPATEN BOGOR: PENDEKATAN DATA ENVELOPMENT ANALYSIS

2014 ◽  
Vol 4 (2) ◽  
pp. 121-138
Author(s):  
Melissa Amandasari ◽  
Rita Nurmalina ◽  
Amzul Rifin
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Formal Education ◽  
Education Level ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Factors Affecting ◽  
Level Number ◽  
Efficiency Factors

Efficiency can be used as a measurement for decision making. Technical efficiency is one of them. The objectives of the research are (1) to analyze farming techniques and input usage, (2) to measure the technical efficiency and (3) to identify factors affecting technical efficiency of maize farm in Gunung Malang, Tenjolaya, Bogor Regency. Data Envelopment Analysis (DEA) approach and Tobit Regression are used to analyze. The result shows that farmers in Gunung Malang are inefficient in the use of production inputs. Farmers need to decrease manure usage, TSP fertilizer, and outside labor for technical efficiency. Factors that are affecting the technical efficiency are formal education level, number of household member and farmer association membership.

Technical efficiency of private sector hospitals in India using data envelopment analysis

2018 ◽  
Vol 25 (9) ◽  
pp. 3570-3591 ◽  
Author(s):  
Aradhana Vikas Gandhi ◽  
Dipasha Sharma
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Hospital Industry ◽  
Technological Advancement ◽  
Tobit Regression ◽  
Content Type ◽  
Input Variables

Purpose The purpose of this paper is to ascertain the performance of Indian hospitals in recent past and derive meaningful insights for policy makers and practicing managers in this area. Design/methodology/approach This paper analyses the technical efficiency of select Indian private hospitals using three related methodologies: data envelopment analysis (DEA), Malmquist Productivity Index (MPI) and Tobit regression. Two output variables (i.e. total income and profit after tax) and four input variables (i.e. cost of labour, net fixed assets, current assets and other operating expenses) were selected for the purpose of the study. Findings DEA analysis has shown that 14 out of 37 hospitals are found to be efficient under the Cooper and Rhodes model of DEA and 20 out of 37 hospitals are efficient under the Banker, Charles and Cooper model of DEA. The empirical results pertaining to MPI indicate an overall productivity progress in the private Indian hospital industry during the study period, which is largely due to technological advancement in the industry. Tobit regression demonstrates that chain affiliated, specialized and multi-city located hospitals exhibit a higher technical efficiency. Research limitations/implications This study has a limitation with reference to the unavailability of data on the input and output parameters of the model. The data related to the number of beds, number of doctors, number of nurses, etc., were not available for the period under consideration. Originality/value This study seems to be one of the few studies applying productivity and performance analysis using DEA, MPI and Tobit regression for the Indian private hospital industry.

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