scholarly journals The efficiency of Jordan insurance companies and its determinants using DEA, slacks, and logit models

2019 ◽  
Vol 26 (1) ◽  
pp. 153-166 ◽  
Author(s):  
Mutasem Mahmoud Jaloudi
Keyword(s):  
Technical Efficiency ◽  
Design Methodology ◽  
Insurance Companies ◽  
Data Envelopment ◽  
Logit Models ◽  
Resource Base ◽  
Return On Assets ◽  
Content Type ◽  
Insurance Law ◽  
Type Size

Purpose The purpose of this paper is to evaluate the technical efficiency in the Jordan insurance market and examine the internal and external determinants that appear to affect the technical efficiency of the insurance companies. Design/methodology/approach The study used panel data for 22 insurance companies operating inside Jordan over the period 2000–2016. The author used the data envelopment analysis to evaluate the technical efficiency scores, slacks-based and logit models to examine the efficiency determinants. Findings The study found that there is a slight development of technical efficiency for the Jordanian insurance companies during the study period. In addition, there is a substantial efficiency difference among insurance companies each year, and there is a variation at the level of efficiency for each company in each year. The results also showed that owners’ equities are among the most important internal determinants of companies’ efficiency, and there is a significant correlation between type, size and return on assets of the insurer and its efficiency. Originality/value This study provides insurance management with relevant indicators that would guide them to make efficient use of the resource base. The period of study also covers the period following the adoption of the insurance law and the issuance of most of the legislation related to the work of insurance companies.

Performance and access to finance in Indonesian horticulture

2017 ◽  
Vol 119 (3) ◽  
pp. 625-638 ◽  
Author(s):  
Eliana Wulandari ◽  
Miranda P.M. Meuwissen ◽  
Maman H. Karmana ◽  
Alfons G.J.M. Oude Lansink
Keyword(s):  
Technical Efficiency ◽  
Design Methodology ◽  
Positive Association ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Access To Finance ◽  
Important Condition ◽  
Content Type ◽  
Using Data ◽  
Agricultural Input

Purpose Access to finance is an important condition for the development of agriculture and the farms’ performance. The purpose of this paper is to analyse the association between the technical efficiency of horticultural farms and access to finance from different finance providers. Design/methodology/approach Data were collected from 434 farmers who produce mango, mangosteen, chili and red onion in Indonesia. Data were subsequently analysed using data envelopment analysis and bootstrap truncated regression. Findings The results show that commercial credit from banks and in-kind finance provided through farmers’ associations have a positive association with the technical efficiency of some types of horticultural farms. Commercial credit from micro finance institution and flexible payment of inputs to the agricultural input kiosk generally have negative associations, especially with the technical efficiency of mangosteen farms. Subsidised credit from banks and in-kind finance from traders have both positive and negative associations with the technical efficiency of the horticultural farms. Originality/value This study adds to the existing literature by analysing access to finance from a broader range of finance providers and its relation to technical efficiency.

Estimating contractors’ efficiency with panel data

2014 ◽  
Vol 14 (3) ◽  
pp. 274-291 ◽  
Author(s):  
Yat Hung Chiang ◽  
Eddie W.L. Cheng
Keyword(s):  
Construction Industry ◽  
Technical Efficiency ◽  
Design Methodology ◽  
Data Envelopment ◽  
Content Type ◽  
The Past ◽  
Literature Base ◽  
Output Side ◽  
Dea Method ◽  
Practical Implications

Purpose – This paper aims to explore the use of the data envelopment analysis (DEA), Cobb-Douglas and translog production function methods in estimating contractors’ efficiency. Design/methodology/approach – In this paper, the DEA, translog and Cobb-Douglas methods were used to estimate the technical efficiency of 23 contractors in Hong Kong from 2003 to 2009. For this research, four input and three output variables were identified. Findings – The results suggest that the efficiency scores obtained from the DEA method were significantly different from those obtained from the translog and Cobb-Douglas methods, while the efficiency scores from the translog method were similar to those from the Cobb-Douglas method. The DEA method further reveals that the company had poor utilisation of its resources over the past few years. On the output side, the current ratio was too small, implying that the company suffered from excess current liabilities relative to its current assets. Research limitations/implications – Application of efficiency measurement in the built environment is still in its infancy. The current research, therefore, calls for more research to be undertaken to establish the applied literature base for the construction industry. Practical implications – The DEA method helps the inefficient company explore ways to improve the utilisation of the inputs as well as the process and to maximise the outputs. Originality/value – Knowing the relative performance of contractors helps understand their competitiveness in the construction industry. By estimating their technical efficiency, contractors can improve the conditions for enhancing performance.

The relationship between supervision quality, CEO’s ability and authority with firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Ameneh Bazrafshan ◽  
Mahdieh Hosseinkamal
Keyword(s):  
Data Envelopment Analysis ◽  
Firm Performance ◽  
Design Methodology ◽  
Business Strategies ◽  
Data Envelopment ◽  
Improve Performance ◽  
Return On Assets ◽  
Content Type ◽  
Listed Firms ◽  
The Relationship

Purpose This paper aims to investigate the relationship between a CEO's ability and authority with firm performance. The authors used a sample of 127 Iranian listed firms for over seven years, from 2011 to 2017. Design/methodology/approach The authors used data envelopment analysis (DEA) to evaluate managers' abilities, and the authors used business strategies to gauge authorities. Also, the methods of Fama–French and Herfindal–Hirschman were used for 889 firm-year observations. Findings The results show that managers' ability based on return on assets can affect firm performance, and skilled managers can improve performance. Originality/value In Iran, managers' abilities and other variables can impact it has been studied. Still, no study has been conducted on managers' strength and their level of authority with the presence of supervision on them.

Efficiency analysis of Islamic banks in Pakistan

Humanomics ◽  
2016 ◽  
Vol 32 (1) ◽  
pp. 19-32 ◽  
Author(s):  
Muhammad Tariq Majeed ◽  
Abida Zanib
Keyword(s):  
Technical Efficiency ◽  
Design Methodology ◽  
Efficiency Analysis ◽  
Risk Exposure ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Data Set ◽  
Content Type ◽  
Conventional Banks

Purpose – This paper aims to empirically analyze the efficiency of full-fledged Islamic banks, Islamic branches of conventional banks and conventional banks in Pakistan. Design/methodology/approach – The paper uses data envelopment analysis to measure and compare the efficiency of banks. Three measures of efficiencies such as total technical efficiency, pure technical efficiency and scale efficiency are computed to achieve the objective of the paper. Findings – Overall, full-fledged Islamic banks are less efficient in terms of total technical efficiency and pure technical efficiency than conventional banks. However, Islamic branches of conventional banks are highly scale-efficient than their counterparts. Research limitations/implications – The findings need to be supported by considering production function and risk exposure factors. Originality/value – This paper evaluates and compares the efficiency of Islamic and conventional banks by utilizing the largest available data set during 2007-2014.

Exploring comparative efficiency and determinants of efficiency for major world airlines

2014 ◽  
Vol 21 (4) ◽  
pp. 675-687 ◽  
Author(s):  
Seong-Jong Joo ◽  
Karen L. Fowler
Keyword(s):  
North America ◽  
Technical Efficiency ◽  
Relative Efficiency ◽  
Design Methodology ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Content Type ◽  
Comparative Efficiency ◽  
Major Airlines ◽  
Tobit Regression Analysis

Purpose – For strategic and competitive insights, this paper aims to measure and benchmark comparative operating efficiencies of major airlines in Asia, Europe, and North America. Design/methodology/approach – The authors employ data envelopment analysis for measuring the relative efficiency of 90 airlines in Asia, Europe, and North America. In addition, the authors use Tobit regression analysis for finding determinants of the efficiency. Findings – Results indicate that the efficiency of the airlines in Europe is the lowest among the airlines in these three regions. Efficiency differences between the airlines in Europe and the airlines in the two other regions (Asia and North America) are statistically significant in terms of technical efficiency and pure technical efficiency, but not significant between the airlines in Asia and North America. For the determinants of efficiency, the authors identified that revenues and expenses were significant for explaining efficiency scores of airlines. Research limitations/implications – Further research is needed to explain the findings that airlines in Europe were less efficient than airlines in Asia and North America. In addition, including variables on customer satisfaction in a future study is desirable. Originality/value – Major contributions of this study include measuring the comparative efficiency of major airlines in Asia, Europe, and North America and finding determinants of the efficiency for strategic insights.

The strength of the board on sustainability assurance decisions

2017 ◽  
Vol 24 (4) ◽  
pp. 863-886 ◽  
Author(s):  
Jennifer Martinez-Ferrero ◽  
Lázaro Rodríguez-Ariza ◽  
Isabel María García-Sánchez
Keyword(s):  
Random Effects ◽  
Design Methodology ◽  
Family Firms ◽  
Positive Impact ◽  
Family Businesses ◽  
Family Ownership ◽  
Logit Models ◽  
Board Size ◽  
Content Type ◽  
Sustainability Reports

Purpose The purpose of this paper is to analyze how family ownership influences the strength of the board’s monitoring function in companies’ decisions regarding the assurance of sustainability reports. Design/methodology/approach The international sample consists of 536 companies operating in more stakeholder-oriented countries during the period 2007-2014. The paper proposes alternative logit models of analysis using the random-effects estimator. Findings The results provide evidence that a firm’s sustainability assurance and its choice of accounting professionals as higher quality assurers are positively associated with board size and independence. The main result is the positive impact of family businesses on these assurance issues. The paper evidences the greater orientation toward sustainability issues of family businesses. Furthermore, it verifies the greater impact of board size on family firms’ assurance demand. Originality/value This study sheds some light on the unexplored topic of sustainability assurance in family firms. One of the differentiating aspects with respect to previous studies is the consideration of the moderating factor of family property. This study also contributes to the understanding of family firms’ demand for assurance and its practitioners, and the literature’s focus on its determinants.

Efficiency evaluation of Indian oil and gas sector: data envelopment analysis

2019 ◽  
Vol 14 (2) ◽  
pp. 362-378 ◽  
Author(s):  
Vikas Vikas ◽  
Rohit Bansal
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Capital Investment ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Content Type ◽  
Indian Economy ◽  
Oil And Gas Sector

Purpose Data envelopment analysis (DEA), a non-parametric technique is used to assess the efficiency of decision-making units which are producing identical set of outputs using identical set of inputs. The purpose of this paper is to find the technical efficiency (TE), pure technical efficiency and scale efficiency (SE) levels of Indian oil and gas sector companies and to provide benchmark targets to the inefficient companies in order to achieve efficiency level. Design/methodology/approach In the present study, a group of 22 oil and gas companies which are listed on the National Stock Exchange for which the data were available for the period 2013–2017 has been considered. DEA has been performed to compare the efficiency levels of all companies. To measure efficiency, three input variables, namely, combined materials consumed and manufacturing expenses, employee benefit expenses and capital investment and two output variables – operating revenues and profit after tax (PAT) have been considered. On the basis of performance for the financial year ending 2017, benchmark targets based on DEA–CCR (Charnes, Cooper and Rhodes) model have been provided to the inefficient companies that should be focused upon by them to attain the efficiency level. The performance of the companies for the past five years has been examined to check the fluctuations in the various efficiency scores of the companies considered in the study over the years. Findings From the results obtained, it is observed that 59 percent, i.e. 13 out of 22 companies are technically efficient. By considering DEA BCC (Banker, Charnes and Cooper) model, 16 companies are observed to be pure technically efficient. In terms of SE, there are 14 such companies. The inefficient units need to improve in terms of input and output variables and for this motive, specified targets are assigned to them. Some of these companies need to upgrade significantly and the managers must take the concern earnestly. The study has also thrown light on the performance of the companies over last five years which shows Oil India Ltd, Gujarat State Petronet Ltd, Petronet LNG Ltd, IGL Ltd, Mahanagar Gas, Chennai Petroleum Corporation Ltd and BPCL Ltd as consistently efficient companies. Research limitations/implications The present study has made an attempt to evaluate the efficiency of Indian oil and gas sector. The results of the study have significant inferences for the policy makers and managers of the companies operating in the sector. The results of the study provide benchmark target level to the companies of Oil and Gas sector which can help the managers of the relatively less efficient companies to focus on the ways to improve efficiency. The improvement in efficiency of a company would not only benefit the shareholders, but also the investors and other stakeholders of the company. Originality/value In the context of Indian economy, very limited number of studies have focused to measure the efficiency of oil and gas sector in the context of Indian economy. The present study aims to provide the latest insight to the efficiency of the companies especially operating in the Indian oil and gas sector. Further, as per our knowledge, this study is distinctive in terms of analyzing the efficiency of Indian oil and gas sector for a period of five years. The longitudinal study of the sector efficiency provides a bird eye view of the average efficiency level and changes in the efficiency levels of the companies over the years.

Bonding capability of Nigerian contracting firms

2018 ◽  
Vol 25 (6) ◽  
pp. 707-720 ◽  
Author(s):  
Ayodeji Emmanuel Oke
Keyword(s):  
Construction Projects ◽  
Design Methodology ◽  
Insurance Companies ◽  
State Governments ◽  
Legal Capacity ◽  
Years Of Experience ◽  
Past Performance ◽  
Content Type ◽  
Financial Strength ◽  
Practical Implications

Purpose The ability of construction contractors to engage in construction bond agreement with guarantors depends on capital, experience, capacity and continuity. Using these criteria, the purpose of this paper is to provide insights into the bonding capacity of Nigerian contractors. Design/methodology/approach Factors required for bonding were examined based on a set of questions addressed to managers of contracting firms and personnel involved in issuing bonds and guarantees in commercial banks and insurance companies. The scorecard approach was employed to determine the bonding capability of the contractors. Findings Contractors’ financial strength and past performance on previous projects are the two important factors considered by guarantors in granting bond to contractors. However, the condition surrounding the bond, the legal capacity of the guarantor to issue bond and the identity of the guarantor are mostly considered by contractors in approaching a potential guarantor. Using the scorecard approach, about one-third of contractors have the necessary requirements to engage in construction bond agreement with guarantors. This ability of contractors is affected by years of experience of the firm but not by their location nor years of experience of their manager. Practical implications It is necessary for contracting firms to increase their capital base through merging, borrowing, etc., and also engage experienced professionals and workers in the execution of construction projects, as this will eventually improve their bonding ability. Social implications The study is limited to construction contractors registered with Ondo and Lagos State Governments and guarantors that are banks and insurance companies in Nigeria. Originality/value The paper specified various areas of concerns for Nigerian contracting firms in their bid to enhance their bonding ability. This will help them in overcoming various challenges and bottlenecks that may arise in securing bonds and guarantees from guarantors.

Configuration analysis of influencing factors of operating efficiency based on fsQCA: evidence from China’s property insurance industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhiguang Li ◽  
Yaokuang Li ◽  
Wei Zhang
Keyword(s):  
Technical Efficiency ◽  
Insurance Industry ◽  
Qualitative Comparative Analysis ◽  
Insurance Companies ◽  
Operating Efficiency ◽  
Content Type ◽  
Leverage Ratio ◽  
Property Insurance ◽  
High Loss ◽  
Core Conditions

Purpose Based on the perspective of complexity theory, the operation process of property insurance companies can be regarded as a complex dynamic nonlinear chaotic system. This paper aims to measure the operating efficiency of 29 Chinese domestic property and casualty (P&C) companies and 18 foreign-invested P&C companies from 2011 to 2017 and outline the path to achieving high-quality development. Design/methodology/approach The data were obtained from the Chinese Insurance Yearbook and China Statistical Yearbook 2012–2018. The data envelopment analysis method was used to calculate the technical efficiency of property insurance companies and fuzzy set qualitative comparative analysis is used for configuration analysis of determinants affecting technical efficiency. Findings This paper founds the average technical efficiency of Chinese domestic P&C insurance companies was 0.914 and that of foreign-invested P&C insurance companies was 0.895. The average total factor productivity of Chinese domestic P&C insurance companies was 1.058 and that of foreign-invested P&C insurance companies was 1.051. There were three modes to improve the company’s technical efficiency, with high loss ratio and low reinsurance ratio, poor employee education and higher leverage ratio and high leverage ratio and low reinsurance ratio as the core conditions. Originality/value This study puts forward four applicable, targeted and proven ways to improve the technical efficiency of China’s P&C insurance industry. These configurations were verified by the cases of existing property insurance companies, which can provide practical references for the insurance industry.

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