Determinants of cargo and eco-efficiencies of global container shipping companies

2020 ◽  
Vol 31 (4) ◽  
pp. 753-775
Author(s):  
Kuo-Cheng Kuo ◽  
Wen-Min Lu ◽  
Qian Long Kweh ◽  
Minh-Hieu Le
Keyword(s):  
Returns To Scale ◽  
Ordinary Least Squares ◽  
Environmental Issue ◽  
Container Shipping ◽  
Shipping Industry ◽  
Truncated Regression ◽  
Strategic Decisions ◽  
Content Type ◽  
Second Stage ◽  
Variable Returns To Scale

PurposeThis study aims to evaluate cargo and eco-efficiency of global container shipping companies (CSCs) and explore the determinants of the CSCs' efficiencies. While the former is derived from the CSCs' operational perspective, the latter highlights environmental issue related to carbon emission reduction.Design/methodology/approachIn the first stage, a two-stage double bootstrap approach of data envelopment analysis (DEA) is applied to derive bias-corrected cargo and eco-efficiency of the top ten global CSCs under the variable returns to scale assumption. In the second stage, ordinary least squares and truncated regression are applied to examine determinants of the CSCs' efficiencies.FindingsThe DEA results reveal that the cargo efficiency of the CSCs is higher than their eco-efficiency by about 2.6% under variable returns to scale in DEA. However, the bias-corrected results show that the difference is 2.9%. The overall average efficiencies suggest that the CSCs can improve their cargo (eco) efficiency by 6.9% (10.8%). In the second stage, the regression results show that the numbers of ship, return on assets and asset turnover ratio are significantly related to both cargo and eco-efficiencies, whereas the total fleet capacity positively affects cargo efficiency.Research limitations/implicationsThe results of this study can help the inefficient CSCs make strategic decisions to improve their performance. For example, their business experience and capacity may be contributing to their efficiencies. However, this study only focuses on the container market among the three main markets, namely, dry bulk, wet bulk and container.Originality/valueThis study highlights an environmental issue in the shipping industry. While CSCs are operating their cargo efficiently in general, they should also put green initiatives into their business operations for the long-term sustainability.

Does capacity utilisation influence financial performance? A study of Indian public bus transport companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shivam Kushwaha ◽  
Shankar Prawesh ◽  
Anand Venkatesh
Keyword(s):  
Financial Performance ◽  
Public Transport ◽  
Ordinary Least Squares ◽  
Positive Influence ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Capacity Utilisation ◽  
Content Type ◽  
Unit Increase ◽  
Unused Capacity

PurposeThe objective of the paper is to get a better understanding of capacity utilisation (CU) in Indian public bus companies. More specifically, this paper would be measuring CU and identifying the drivers of the same. Finally, the influence of CU on the financial performance of Indian bus companies is examined.Design/methodology/approachThe study adopted data envelopment analysis (DEA) to measure the CU in Indian public bus companies. Truncated regression was used to identify the drivers of CU. Subsequently, the ordinary least squares (OLS) regression was used to analyse the influence of CU on Indian bus companies' financial performance. The period of study was from 2013 to 17.FindingsThe significant drivers of CU were fleet age, passenger lead and fleet utilisation. Additionally, it was found that CU had a significant positive influence on the financial performance of Indian public bus companies and a unit increase in unused capacity has led to an increase of 7% in the operating ratio of the bus companies.Practical implicationsGetting insights into CU, apart from technical efficiency, is of immense use to both public transport researchers and practitioners. Managers of public bus companies should be mindful of CU as it has a significant bearing on their financial performance.Originality/valueThis is the first study in public transport, which establishes the linkage between CU and financial performance. Besides, a modified measure of cost-efficiency has also been conceptualised in this study.

scholarly journals Advertising efficiency in the Spanish beer industry: spending too much?

2018 ◽  
Vol 30 (4) ◽  
pp. 410-427 ◽  
Author(s):  
Ricardo Sellers-Rubio
Keyword(s):  
Environmental Variables ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Content Type ◽  
Second Stage ◽  
Beer Industry ◽  
Multiple Input ◽  
Brand Portfolio ◽  
First Time ◽  
Advertising Efficiency

Purpose The purpose of this paper is to estimate advertising efficiency in the Spanish beer industry and to analyse the effects of several environmental variables and brand portfolio scope on advertising efficiency scores. Design/methodology/approach A two-stage double bootstrap procedure is used. In the first stage, advertising efficiency is estimated using a bootstrapped data envelopment analysis on a multiple input-output model of advertising. In the second stage, a bootstrapped truncated regression model is estimated to identify the determinants of advertising efficiency. Both stages are estimated simultaneously. The empirical application is carried out on a sample of Spanish brewers between 2007 and 2014. Findings Results show low advertising efficiency scores and highlight the effects that environment and brand portfolio scope have on these estimates. Originality/values For the first time, this paper analyses the effect of environmental variables and the brand portfolio scope on advertising efficiency in the beer industry.

scholarly journals The associations of management and demographic factors with technical, allocative and economic efficiency of Irish dairy farms

2012 ◽  
Vol 150 (6) ◽  
pp. 738-754 ◽  
Author(s):  
E. KELLY ◽  
L. SHALLOO ◽  
U. GEARY ◽  
A. KINSELLA ◽  
F. THORNE ◽  
...  
Keyword(s):  
Economic Efficiency ◽  
Key Management ◽  
Returns To Scale ◽  
Demographic Variables ◽  
Data Envelopment ◽  
The European Union ◽  
Second Stage ◽  
Key Variables ◽  
Stage Analysis ◽  
Variable Returns To Scale

SUMMARYThe phasing out of the European Union (EU) milk quota will create opportunities for producers to expand without the constraint of quota which has limited expansion since 1984. Therefore, it will be necessary for Irish dairy producers to become more competitive by increasing performance using the least amount of inputs per unit of output and maximizing the level of technical and economic efficiency. The objectives of the current study were to measure technical, allocative and economic efficiency, and to investigate the associations of key management, qualitative and demographic characteristics on efficiency. Efficiency scores were calculated using the non-parametric methodology data envelopment analysis (DEA). The DEA results showed that on average the sample of Irish dairy producers were not fully efficient in 2008 with technical, allocative and economic efficiency results under variable returns to scale (VRS) of 0·771, 0·740 and 0·571, respectively. In a second stage analysis, Tobit regressions were used to determine the associations of key variables with the technical, allocative and economic efficiency scores. The efficiency scores were included as dependent variables and the key independent variables were a variety of management and demographic variables. Mean calving date, number of grazing days, breeding season length, milk quality, discussion group membership and soil quality were all associated with technical and economic efficiency. Milk recording, use of artificial insemination (AI) and level of dairy specialization were associated with allocative and economic efficiency only. Age and age squared were the only significant demographic associations with the efficiency scores.

The impact of total quality management and supply chain integration on firm performance of container shipping companies in Singapore

2018 ◽  
Vol 30 (3) ◽  
pp. 605-626 ◽  
Author(s):  
Vinh Thai ◽  
Ferry Jie
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Quality Management ◽  
Total Quality Management ◽  
Small Sample ◽  
Supply Chain Integration ◽  
Container Shipping ◽  
Shipping Industry ◽  
Total Quality ◽  
Content Type

PurposeThe purpose of this paper is to investigate the influences of total quality management (TQM) and supply chain integration (SCI) practices on firm performance (FP) of container shipping industry in Singapore.Design/methodology/approachA survey was conducted with 159 container shipping companies in Singapore to examine the interrelationships between SCI and TQM practices and FP. A stepwise multiple regression analysis using SPSS version 14.0 was performed on the data.FindingsStatistical results suggest that both TQM and SCI practices have positive effects on service quality and FP but at different extents, while TQM also contributes positively to SCI.Research limitations/implicationsThe small sample is the main limitation. The findings bear important implications for further research as understanding these dimensions can help to position key changes and industry improvement that will increase revenue and reduce cost to the container shipping companies in Singapore.Practical implicationsThis research provides guidelines for shipping managers on how to implement the SCI and TQM practices appropriately to boost their FP to the fullest extent.Social implicationsThis study has unique implications for social sustainability especially the container shipping industry, which is hard pressed to combat the challenges within the logistics/transportation sector.Originality/valueThis is perhaps the first study that examines the influence of SCI and TQM practices on the performance of container shipping firms that helps them see beyond the silo mentality and focus on greater value addition in FP.

Market segmentation in container shipping services: a qualitative study

2017 ◽  
Vol 40 (10) ◽  
pp. 1100-1116 ◽  
Author(s):  
Gökcay Balci ◽  
Ismail Bilge Cetin
Keyword(s):  
Market Segmentation ◽  
Container Shipping ◽  
Shipping Industry ◽  
Structured Interviews ◽  
Business Services ◽  
Service Market ◽  
Content Type ◽  
Segmentation Approach ◽  
Segmentation Framework ◽  
Business To Business

Purpose Container shipping is a standardized business-to-business service market where carriers need to stay customer focused to survive. Market segmentation is an ideal solution to develop customized marketing programs for each segment, but container lines need personalized marketing programs for each customer. Hence, the purpose of this study is to develop a segmentation framework that can help container lines to profile each customer more efficiently considering their needs, strategic importance and demographics. Design/methodology/approach This study has adopted an exploratory approach. Semi-structured interviews were conducted with managers of container lines. Findings Segmentation bases are the type of customer, container volume, loyalty, seasonality, decision maker, the industry of shipper, cargo characteristics, container type, destination region and export/import. Market segmentation in container shipping can be helpful in developing effective customized marketing offering, including effective price discrimination and customized marketing communications. Practical implications A port-specific segmentation approach was adopted and a flexible segmentation framework was proposed for container lines to adapt in different hinterlands. Originality/value Unlike the literature, this study suggests market segmentation can be very helpful in customized marketing in business-to-business services like container shipping industry. This study also suggests port-specific market segmentation for container lines instead of route-specific.

The inefficiency of Vietnamese prawn-rice rotational crops: a slacks-based data envelopment analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thi Anh Ngoc Pham ◽  
Ho Huu Loc ◽  
Dung Duc Tran ◽  
Nguyen Hong Quan
Keyword(s):  
Returns To Scale ◽  
Mekong Delta ◽  
Farming System ◽  
Truncated Regression ◽  
Technical Inefficiency ◽  
Content Type ◽  
Ecological Zones ◽  
Water Surface Area ◽  
Input And Output ◽  
Production Areas

PurposeThe purpose of this paper is to investigate the input- and output-specific technical inefficiency of Vietnamese prawn-rice rotational crops (PRRC) and to identify the impacts of the socio-economic characteristics of farmers and farms on these technical inefficiencies.Design/methodology/approachThis study first used a Russell-type (input-output) directional distance function to estimate the input- and output-specific technical inefficiency. Second, it applied a bootstrap truncated regression to analyze the factors influencing these technical inefficiencies. Data were gathered through a survey among 94 farmers, from Ben Tre and Kien Giang provinces, the two popular PRRC areas in the Mekong Delta.FindingsResults show that Vietnamese PRRC farmers could reduce the water surface area by 3%, the use of seedlings by 15%, labor by 16%, fertilizers by 26%, and the use of others by 24%, while simultaneously increasing the revenue of farming system by 57% relative to the variable returns to scale (VRS) frontier. Farmers with more years of experience are generally better in managing the use of seedlings and in improvement of revenue. Farmers in Kien Giang province are more efficient in achieving revenue of the PRRC farming system than farmers in Ben Tre province.Research limitations/implicationsOutcomes of this study are useful to identify strategies in minimizing the use of inputs while simultaneously maximizing PRRC production.Originality/valueThis paper relates to the comparison of two mostly different ecological zones, being the dominant production areas of PRRC, in which, Kien Giang represents the western part, while Ben Tre is in the eastern part of the Vietnam’s Mekong Delta. The findings not only expand the current understanding but also suggest various meaningful research questions regarding the development of Vietnamese PRRC under the impacts of climate change. The study also contributes to the literature on examining the input- and output-specific technical inefficiencies and influencing factors.

Surgical services efficiency by data envelopment analysis

2015 ◽  
Vol 22 (6) ◽  
pp. 978-993 ◽  
Author(s):  
Saeedeh Ketabi ◽  
Hamid Ganji ◽  
Samireh Shahin ◽  
Mehdi Mahnam ◽  
Marzieh Soltanolkottabi ◽  
...  
Keyword(s):  
Data Envelopment Analysis ◽  
Returns To Scale ◽  
Management Control ◽  
Scale Model ◽  
Data Envelopment ◽  
Empirical Measures ◽  
Content Type ◽  
Surgical Services ◽  
Measures Of Performance ◽  
Variable Returns To Scale

Purpose – Different surgical services demand operating rooms (OR) to treat elective patients, each competing for a limited supply of OR time. The purpose of this paper is to obtain empirical measures of performance in the management of OR. The current research compares technical efficiency of 11 specialties in elective operating theatre of Alzahra Hospital in Isfahan, Iran in autumn of 2009. Design/methodology/approach – Data envelopment analysis (DEA) can be used as tools in management control and planning. First, the input oriented and variable returns to scale model of DEA technique has been applied and separate benchmarks for possible reductions in resources used has been derive, and significant savings are possible on this account. Findings – The efficiency scores of inefficient specialties are between 0.62 and 0.96. Neurosurgery and general surgery are the best and the worst units. DEA results determine by how much hospitals can increase elective inpatient surgeries for each specialty. Originality/value – The originality of this study is to obtain empirical measures of performance in the management of OR. DEA has not been applied to measure the efficiency of different department in an organization. The measures are common in different units and have been collected in a similar way.

scholarly journals Monopoly in the container shipping market: an econometric approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Takuma Matsuda ◽  
Enna Hirata ◽  
Kawasaki Tomoya
Keyword(s):  
Market Structure ◽  
Market Competition ◽  
Far East ◽  
Entire Period ◽  
Empirical Literature ◽  
Container Shipping ◽  
Shipping Industry ◽  
The European Union ◽  
Content Type ◽  
Monopolistic Pricing

PurposeSince the 2010s, market conditions for container shipping companies have been deteriorating owing to decreasing container cargo trade and increasing supply capacity. This study aims to contribute to the empirical literature on the container shipping industry market structure. Specifically, this study aims to investigate the extent of market competition.Design/methodology/approachThis study analyzes the market structure and evaluates the market power of shipping companies through a non-structural test.FindingsThe H-statistic for the entire period of 2004–2018 was 0.37, which is significantly different from zero. This indicates the absence of monopoly pricing throughout the entire period. For the time-phased estimates, the H-statistic between 2004 and 2008 is 0.15, which is not significantly different from zero. On the other hand, the H-statistic from 2009 to 2018 was 0.40, which differs significantly from zero.Originality/valueAs the Far East Freight Conference had released tariffs and charge rates by item for container shipping routes, monopolistic pricing is said to have appeared until the European Union abolished the European Economic Community (No. 4056/86) in 2008, before the economic crisis. However, this study indicates that pricing in the container shipping industry has been distinctly non-monopolistic; further, competition seems to have intensified since 2008. Industry competitiveness is of interest not only to academics but also to practitioners, including policymakers, especially when considering competition policies.

Drivers of financial and operational efficiency of MFIs: empirical evidences from Eastern Europe and Central Asia

2020 ◽  
Vol 27 (9) ◽  
pp. 2679-2697
Author(s):  
Asif Khan ◽  
Saba Shireen
Keyword(s):  
Eastern Europe ◽  
Central Asia ◽  
Best Practice ◽  
Operational Efficiency ◽  
Microfinance Institutions ◽  
Truncated Regression ◽  
Content Type ◽  
Bootstrap Procedure ◽  
Empirical Results ◽  
Second Stage

PurposeThe study attempts to examine the bias-adjusted financial and operational efficiency estimates of microfinance institutions (MFIs) operating in the Eastern Europe and Central Asia (ECA) region during the financial year 2017–2018. In addition, the study also identifies the responsible factors determining the financial and operational performances of MFIs operating in the ECA region.Design/methodology/approachThe study employs two-stage bootstrap data envelopment analysis (DEA). In the first stage, the authors incorporate the bootstrap procedure in the DEA framework as suggested by Simar and Wilson (2000) to estimate the bias-corrected efficiency scores of 67 sample MFIs. In order to identify the drivers of efficiency level, the study deploys the bootstrap truncated regression model following the Simar and Wilson (2007) guidelines in the second stage of analysis.FindingsThe authors note from the empirical results that MFIs operating in the ECA region are relatively more financially efficient (0.588) than socially efficient (0.496). However, none of the MFIs were found to be operating at best-practice frontier while considering the bias-adjusted efficiency estimates. Further, the results of second stage of analysis confirm that corporate governance, that is, board size has positive and statistically significant impact on MFIs’ performances. In addition, the bad credit quality deteriorates both financial revenue and operational efficiency. Moreover, the MFIs’ size, profit status and debt-to-equity ratio were also found to be statistically significant to determine the operational and financial efficiency of MFIs in the ECA region.Practical implicationsThe study provides the robust efficiency estimates and factors responsible to determine the financial and operational efficiency of MFIs operating in the ECA region. Further, the empirical results of the study provide the inputs and further direction to the policymakers, regulators, practitioners and managers in framing the policy and optimal operating strategies for ECA MFIs industry.Originality/valueThe study extends the DEA analysis by incorporating the bootstrap procedure in DEA model to estimate the bias-adjusted efficiency scores which are more reliable and robust. In addition, bootstrap truncated regression has been applied to identify the drivers of efficiency. Moreover, in the literature there is no single study which has deployed the double bootstrap DEA framework to examine the financial and operational efficiency estimates and its drivers.

scholarly journals Global risk factors of NYSE- and NASDAQ-listed shipping companies’ stock returns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikiforos T. Laopodis
Keyword(s):  
Risk Factors ◽  
Stock Returns ◽  
Generalized Method Of Moments ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Shipping Industry ◽  
Global Risk ◽  
Global Business ◽  
Content Type ◽  
The Impact

Purpose This paper aims to investigate the impact of global macro and other risk factors of the New York Stock Exchange (NYSE)- and National Association of Securities Dealers Automated Quotation (NASDAQ)-listed shipping companies’ stock returns from January 2001 to December 2019. Design/methodology/approach The methodological design includes multi-factor regressions for individual companies, augmented versions of these regressions to examine the likely impact of additional factors and finally panel regressions to assess the impact risk factors on all companies simultaneously. Estimations are done via ordinary least squares and the generalized method of moments. Findings Multi-factor model results showed that some of the US-specific and global macro risk factors surfaced as statistically significant for most of the companies and appeared to exhibit a consistent pattern in the way they affected shipping stocks. Thus, these companies’ exposures emanate mostly from the general US market’s movements and to a lesser extent from other firm-specific factors. Second, from the results of panel specifications, this study observes that domestic risk factors such as unemployment, inflation rates and industrial production growth emerged as significant for the NYSE-listed companies. As regard, the NASDAQ-listed ones, it was found that Libor and the G20 inflation rate were also affecting their stock returns. Research limitations/implications Companies examined are listed only in the US’s NYSE and NASDAQ. Hence, companies listed elsewhere were excluded. It may be concluded that these US exchange-listed companies abide mostly by domestic fundamentals and to some extent to selected global factors. Practical implications The significance of the findings in this study pertains to global investors and shipping companies’ managers alike. Specifically, given the differential sensitivities of the shipping companies to various risk factors (and the global business cycle, in general), it is possible to view the shipping companies’ stocks as a separate, alternate asset class in a global, well-diversified portfolio. Thus, such a broader portfolio would permit investors to earn positive returns and reduce overall risk. Managers of shipping companies would also benefit from the findings in this study in the sense that they should better understand the varying exposures of their companies to changing global and domestic macro conditions and successfully navigate their companies through business cycles. Originality/value Research on the global shipping industry has lagged behind and was mainly concentrated on the investigation of the sources of shipping finance and capital structure of shipping companies, investment and valuation, corporate governance and risk measurement and management. Empirical research on the potential micro and macro determinants of the stock returns of shipping companies, however, is scant. This paper fills the gap in the literature of identifying and evaluating the various macroeconomic, US and international risk, factors that affect shipping companies’ stock returns in a highly financially integrated world.

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