Non-radial two-stage network DEA model to estimate returns to scale

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seyed Mohamad Fakhr Mousavi ◽  
Alireza Amirteimoori ◽  
Sohrab Kordrostami ◽  
Mohsen Vaez-Ghasemi
Keyword(s):  
Design Methodology ◽  
Returns To Scale ◽  
Scale Economies ◽  
Data Envelopment ◽  
Two Stage ◽  
Network Dea ◽  
Content Type ◽  
Long Run ◽  
Box Structures

Purpose As returns to scale (RTS) describes the long run connection of the changes of outputs relative to increases in the inputs, the purpose of this study is to answer the following questions: If the proportionate changes exist in the inputs, what is the rate of changes in outputs with respect to the inputs’ variations in the two-stage networks over the long term? How can the authors investigate quantitative RTS in the two-stage networks? In other words, the purpose of this research is to introduce a different approach to estimate the performance, RTS and scale economies (SE) in network structures. Design/methodology/approach This paper proposes a novel non-radial approach based on data envelopment analysis to analyze the performance and to investigate RTS and SE in two-stage processes. Findings The findings show that the range adjusted measure (RAM)/RTS approach can identify reference sets for overall systems and each stage. In addition, the models presented in this paper can classify decision-making units and determine the increasing/decreasing trends of RTS. Originality/value The majority of previous RTS studies have been examined in black-box structures and have been discussed in a radial framework. Therefore, in this study, RTS and SE in the two-stage networks are dealt with using an extended RAM approach. Actually, the efficiency and RTS for each stage and the overall model are calculated using the proposed technique.

Shareholder activism impact on efficiency in Brazil

2019 ◽  
Vol 19 (1) ◽  
pp. 141-157 ◽  
Author(s):  
Paula Guimaraes ◽  
Ricardo P.C. Leal ◽  
Peter Wanke ◽  
Matthew Morey
Keyword(s):  
Shareholder Activism ◽  
Efficiency Score ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Two Stage ◽  
Content Type ◽  
Financial Characteristics ◽  
Long Term Impact ◽  
A Company

Purpose This paper aims to investigate the long-term impact of shareholder activism on Brazilian listed companies. Design/methodology/approach This study uses a sample of 194 companies in 2010, 2012 and 2014 and a two-stage data envelopment analysis to generate an efficiency score based on corporate governance, ownership structure and financial characteristics of companies. In the second stage, the study applies a bootstrap truncated regression to identify whether there is a relationship between the efficiency scores and a company-level activism index. Findings The results show a negative correlation between the efficiency scores and the activism index, suggesting that activist shareholders tend to target less efficient companies. A time analysis over the period 2010-2014 does not offer evidence of impacts of activism on changes of the efficiency scores. Practical implications Activist shareholders target less efficient companies. Shareholder activism increased after regulation that facilitated shareholder voting and required greater company transparency was introduced. Originality/value The two-stage nature of the procedure used in the analysis ascertains that this result is not spurious, assuring data separability between productive resources and contextual variables. This study contributes to the scarce literature on activism in emerging markets.

How responsive are Indonesia's bilateral inpayments and outpayments to real depreciation of Rupiah?

2012 ◽  
Vol 29 (2) ◽  
pp. 133-143 ◽  
Author(s):  
Mohsen Bahmani‐Oskooee ◽  
Hanafiah Harvey
Keyword(s):  
Design Methodology ◽  
Asian Countries ◽  
Bounds Testing ◽  
Content Type ◽  
Currency Depreciation ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Almost All

PurposeThe purpose of this paper is to investigate the sensitivity of Indonesia's inpayments and outpayments to currency depreciation on a bilateral basis.Design/methodology/approachThe methodology used is based on the bounds testing approach.FindingsIt is found that while real depreciation of Rupiah has short‐run effects in a majority of the cases, these effects last into the long‐term in almost 50 percent of the cases. Surprisingly, almost all of the affected partners in the long run are found to be the Asian countries.Originality/valueThe paper is very original in that no one has looked at this issue before.

Bank efficiency in Bangladesh revisited: a slack-based network DEA approach

2020 ◽  
Vol 47 (5) ◽  
pp. 1001-1014 ◽  
Author(s):  
Md. Abul Kalam Azad ◽  
Peter Wanke ◽  
Mohammad Zahir Raihan ◽  
S.M. Rakibul Anwar ◽  
Riduanul Mustafa
Keyword(s):  
Design Methodology ◽  
Black Box ◽  
Data Envelopment ◽  
Business Unit ◽  
Network Dea ◽  
Bank Efficiency ◽  
Policy Makers ◽  
Content Type ◽  
Box Structure ◽  
Banking Business

PurposeData envelopment analysis (DEA) calculates the efficiency of a business unit if all the inputs are creating outputs within a “black box.” Under traditional DEA, the detailed process of that business unit is ignored. However, a network DEA can explain the black box structure and provide efficiency results for sub-sections within any business process. This study aims to propose a network DEA model that explains a bank's total operation.Design/methodology/approachEarlier studies have focused only on bank efficiency ignoring this breakdown. This study departs from them by using a slack-based two-stage network DEA under a novel banking business perspective.FindingsThe results reveal that network DEA provides better benchmarking insights than the traditional DEA. As such, better benchmarking can guide both the banking industry managers and policy makers in Bangladesh.Originality/valueThe major contribution of this study includes dividing a bank's total operation efficiency into two sub-operations: “core operations – collecting deposits and giving loans” and “additional operations – fees, commissions and other services.”

A benchmarking study of Indian seaports

2019 ◽  
Vol 13 (1) ◽  
pp. 88-102
Author(s):  
Sajeev Abraham George ◽  
Anurag C. Tumma
Keyword(s):  
Financial Performance ◽  
Future Research ◽  
Data Envelopment ◽  
Operational Parameters ◽  
Two Stage ◽  
Content Type ◽  
The Public ◽  
Port Authorities ◽  
Financial Performance Measures ◽  
The Government

Purpose The purpose of this paper is to benchmark the operational and financial performances of the major Indian seaports to help derive useful insights to improve their performance. Design/methodology/approach A two-stage data envelopment analysis (DEA) methodology has been used with the help of data collected on the 13 major seaports of India. The first stage of the DEA captured the operational efficiencies, while the second stage the financial performance. Findings A window analysis over a period of three years revealed that no port was able to score an overall average efficiency of 100 per cent. The study identified the better performing units among their peers in both the stages. The contrasting results of the study with the traditional operational and financial performance measures used by the ports helped to derive useful insights. Research limitations/implications The data used in the study were majorly limited to the available sources in the public domain. Also, the study was limited to the major seaports which are under the Government of India and no comparisons were carried out with other local or international ports. Practical implications There is a need to prioritize investments and improvement efforts where they are most needed, instead of following a generalized approach. Once the benchmark ports are identified, the port authorities and other relevant stakeholders should work in detail on the factors causing inefficiencies, for possible improvements in performance. Originality/value This paper carried out a two-stage DEA that helped to derive useful insights on operational efficiency and financial performance of the India seaports. A combination of the financial and operational parameters, along with a comparison of the DEA results with the traditional measures, provided a different perspective on the Indian seaport performance. Considering the scarcity of research papers reported in the literature on DEA-based benchmarking studies of seaports in the Indian context, it has the potential to attract future research in this field.

Intertwining CSR with strategy – the way ahead

2014 ◽  
Vol 14 (2) ◽  
pp. 211-219 ◽  
Author(s):  
Shital Jhunjhunwala
Keyword(s):  
Business Strategy ◽  
Design Methodology ◽  
Business Models ◽  
Corporate Strategy ◽  
Sustainable Business ◽  
Socially Responsible ◽  
Content Type ◽  
Sustainable Business Models ◽  
Corporate Social

Purpose – The purpose of this paper is to emphasize the importance and means of making corporate social responsibility (CSR) an integral part of corporate strategy with the help of case studies. Design/methodology/approach – The article explores the transformation of business from being egocentric to socially responsible. With the use of examples it demonstrates how integrating CSR into strategy can create sustainable business models. Findings – Firms need to develop a framework for integrating CSR into their business strategy for long term successful survival. Social implications – Corporates and society are intertwined and mutually dependent. Business cannot survive without society's acquiescence nor succeed without its active support. Originality/value – The article explains the benefits of CSR and how to make it an integral part of business strategy to gain a competitive advantage.

Long run apartment price dynamics in Swedish and German cities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sviatlana Engerstam
Keyword(s):  
Banking Sector ◽  
Cointegration Analysis ◽  
Price Dynamics ◽  
Long Term Effects ◽  
Content Type ◽  
Macroeconomic Variables ◽  
Price Elasticities ◽  
Long Run ◽  
German Cities

PurposeThis study examines the long term effects of macroeconomic fundamentals on apartment price dynamics in major metropolitan areas in Sweden and Germany.Design/methodology/approachThe main approach is panel cointegration analysis that allows to overcome certain data restrictions such as spatial heterogeneity, cross-sectional dependence, and non-stationary, but cointegrated data. The Swedish dataset includes three cities over a period of 23 years, while the German dataset includes seven cities for 29 years. Analysis of apartment price dynamics include population, disposable income, mortgage interest rate, and apartment stock as underlying macroeconomic variables in the model.FindingsThe empirical results indicate that apartment prices react more strongly on changes in fundamental factors in major Swedish cities than in German ones despite quite similar development of these macroeconomic variables in the long run in both countries. On one hand, overreactions in apartment price dynamics might be considered as the evidence of the price bubble building in Sweden. On the other hand, these two countries differ in institutional arrangements of the housing markets, and these differences might contribute to the size of apartment price elasticities from changes in fundamentals. These arrangements include various banking sector policies, such as mortgage financing and valuation approaches, as well as different government regulations of the housing market as, for example, rent control.Originality/valueIn distinction to the previous studies carried out on Swedish and German data for single-family houses, this study focuses on the apartment segment of the market and examines apartment price elasticities from a long term perspective. In addition, the results from this study highlight the differences between the two countries at the city level in an integrated long run equilibrium framework.

A multifractal detrended fluctuation analysis of housing market: a role of financial crises in developed economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Ali Raza ◽  
Nida Shah ◽  
Muhammad Tahir Suleman ◽  
Md Al Mamun
Keyword(s):  
Financial Crisis ◽  
Housing Market ◽  
Market Efficiency ◽  
House Price ◽  
Fluctuation Analysis ◽  
Content Type ◽  
Multifractal Detrended Fluctuation Analysis ◽  
Long Run ◽  
Before And After

Purpose This study aims to examine the house price fluctuations in G7 countries by using the multifractal detrended fluctuation analysis (MF-DFA) for the years 1970–2019. The study examined the market efficiency between the short-term and long-term in the full sample period, before and after the global financial crisis period. Design/methodology/approach This study uses the MF-DFA to analyze house price fluctuations. Findings The findings confirmed that the housing market series are multifractal. Furthermore, all the markets showed long-term persistence in both the short and long-term. The USA is identified as the most persistent house market in the short run and Japan in the long run. Moreover, in terms of efficiency, Canada is identified as the most efficient house market in the long run and the UK in the short run. Finally, the result of before and after the financial crisis period is consistent with the full sample result. Originality/value The contribution of this study in the literature is fourfold. This is the first study that has examined the house prices efficiency by using the MF-DFA technique given by Kantelhardt et al. (2002). Previously, the house market prices and efficiency has been investigated using generalized Hurst exponent (Liu et al., 2019), Quantile Regression Approach (Chae and Bera, 2019; Tiwari et al., 2019) but no study to the best of the knowledge has been done that has used the MF-DFA technique on the housing market. Second, this is the first study that has focused on the house markets of G7 countries. Third, this study explores the house market efficiency by dividing the market into two periods i.e. before and after the financial crisis. The study strives to investigate if the financial crisis determines the change in the degree of market efficiency or not. Finally, the study gives valuable insights to the investors that will help them in their investment decisions.

Tornadoes, poverty and race in the USA: A five-decade analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Russ D. Kashian ◽  
Tracy Buchman ◽  
Robert Drago
Keyword(s):  
African American ◽  
African Americans ◽  
Study Finding ◽  
Median Income ◽  
Content Type ◽  
Vulnerable Communities ◽  
Long Run ◽  
Level Data ◽  
The Usa

PurposeThe study aims to analyze the roles of poverty and African American status in terms of vulnerability to tornado damages and barriers to recovery afterward.Design/methodology/approachUsing five decades of county-level data on tornadoes, the authors test whether economic damages from tornadoes are correlated with vulnerability (proxied by poverty and African American status) and wealth (proxied by median income and educational attainment), controlling for tornado risk. A multinomial logistic difference-in-difference (DID) estimator is used to analyze long-run effects of tornadoes in terms of displacement (reduced proportions of the poor and African Americans), abandonment (increased proportions of those groups) and neither or both.FindingsControlling for tornado risk, poverty and African American status are linked to greater tornado damages, as is wealth. Absent tornadoes, displacement and abandonment are both more likely to occur in urban settings and communities with high levels of vulnerability, while abandonment is more likely to occur in wealthy communities, consistent with on-going forces of segregation. Tornado damages significantly increase abandonment in vulnerable communities, thereby increasing the prevalence of poor African Americans in those communities. Therefore, the authors conclude that tornadoes contribute to on-going processes generating inequality by poverty/race.Originality/valueThe current paper is the first study connecting tornado damages to race and poverty. It is also the first study finding that tornadoes contribute to long-term processes of segregation and inequality.

Building a new resilience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Buell Hirsch
Keyword(s):  
Cyber Security ◽  
Design Methodology ◽  
Business Leaders ◽  
Human Potential ◽  
Global Business ◽  
Content Type ◽  
Business System ◽  
New Business ◽  
Practical Implications

Purpose The purpose of the viewpoint is to examine the various ways in which the pandemic has exposed structural vulnerabilities in global business infrastructures that have long existed and been long ignored. It urges business leaders not to return to a “new normal” but make fundamental changes to ensure that their businesses are truly resilient and can withstand future threats more effectively. Design/methodology/approach The viewpoint looks at the various kinds of vulnerability to which businesses are exposed – such as supply chain, human capital, cyber security and climate change – and proposes ways to ensure that businesses, as well as shareholders and government entities work together to build true resilience. Findings At its core, the viewpoint exposes the various ways in which businesses have turned a blind eye to vulnerabilities that have always lurked just below the surface and suggests. The argument is that to secure the long-term future of our global business system, we can no longer remain oblivious to fundamental weaknesses in our infrastructures. Research limitations/implications The viewpoint looks selectively at the available data and is, therefore, by definition, subjective and non-comprehensive. Practical implications If businesses and shareholders truly take the recommendations of this viewpoint to heart, we can build a more resilient future through long-term investments in risk management infrastructures of all kinds that will secure a more prosperous and stable future. Social implications Developing a more resilient and stable global business infrastructure will help reduce the business volatility deriving from last minute responses to predictable threats. This will, in turn, help provide more stable, fulfilling employment, especially in developing countries that will act as a fly wheel for the secure development of human potential around the world. Originality/value While there has been much speculation of what the “new business normal” will look like once the pandemic has been conquered, this is, the author believes, the first piece to look concretely on how we can not only “build back better” but build back more soundly for the long term.

scholarly journals Accountability reporting objectives of Māori organizations

2018 ◽  
Vol 30 (4) ◽  
pp. 433-443 ◽  
Author(s):  
Russell Craig ◽  
Rawiri Taonui ◽  
Susan Wild ◽  
Lũcia Lima Rodrigues
Keyword(s):  
New Zealand ◽  
Design Methodology ◽  
Indigenous Communities ◽  
Core Values ◽  
Annual Reports ◽  
Content Type ◽  
Cultural Activities ◽  
The Core ◽  
Regional Associations

Purpose This paper aims to highlight the accountability reporting objectives of four Māori-controlled organizations. The examples cited reflect the core values of the indigenous Māori people of New Zealand (Aotearoa) and help demonstrate how these values are manifest in the accountability reporting of Māori-controlled organizations. Design/methodology/approach Narrative sections of ten annual reports of two small and two large Maori organizations, drawn variously from their financial years ending in the calendar years 2009 to 2014, are read closely. These organizations represent diverse tribal and regional associations in terms of size, scope and structure; and in terms of the business, social and cultural activities they pursue. Findings Three core Māori values are identified: spirituality (wairuatanga); intergenerationalism and restoration (whakapapa); and governance, leadership and respect (mana and rangatiratanga). The commitment to these values and the way this commitment is reflected in accountability reports of Maori organizations, is presented. Originality/value The examples provided, and the associated discussion, should help inform reporting initiatives of organizations that are seeking better accountability in terms of their long-term engagement with indigenous communities, the environment and broader society.

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