scholarly journals DEA Window Analysis Efficiency Measurement of Selected Nigerian Bank

2021 ◽  
Vol 4 (1) ◽  
pp. 176-184
Author(s):  
IJ DIKE
Keyword(s):  
Returns To Scale ◽  
Balance Sheet ◽  
Scale Model ◽  
Scale Efficiency ◽  
Average Efficiency ◽  
Window Analysis ◽  
Scale Size ◽  
Constant Returns To Scale ◽  
Dea Window Analysis ◽  
Variable Returns To Scale

This study analyzes the performance efficiency of six selected banks in Nigeria for the period 2010 – 2016. DEA window analysis was employed to establish the performance efficiency of the selected banks. The analysis is based on panel data for the period under review. The result of the DEA window analysis for the reviewed period showed that the average efficiency scores under constant returns to scale ranged from 84% to 91%. Under the variable returns to scale, the average efficiency scores ranged from 91% to 95%. The average inefficiency of the selected Nigeria commercial banks under the constant returns to scale model was in the range 9 – 16%. This inefficiency could be attributed to the excess of customers deposits on the balance sheet of the selected banks. The average scale efficiency for the banks was 93%. Guaranty Trust Bank was the most efficient bank on all measures. United Bank for Africa was the most inefficient bank under constant returns to scale and variable returns to scale. It was however, more scale efficient than three other banks, an indication that its inefficiency cannot be attributed to inappropriate scale size.

scholarly journals Application of Window Malmquist Index for Examination of Efficiency Change of Czech Commercial Banks

2017 ◽  
Vol 8 (3) ◽  
pp. 173-190
Author(s):  
Iveta Palecková
Keyword(s):  
Commercial Banks ◽  
Returns To Scale ◽  
Malmquist Index ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Efficiency Change ◽  
Average Efficiency ◽  
Index Approach ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Abstract The aim of the paper is to apply the Window Malmquist index approach to examine the efficiency change of Czech commercial banks within the period 2004-2013. We used the Data Envelopment Analysis and theWindow Malmquist index approaches to estimate the efficiency change of Czech commercial banks. The average efficiency computed under the assumption of constant returns to scale was 73% and under the assumption of variable returns to scale the value was 83%. We estimated the average positive efficiency growth of Czech commercial banks during the period 2004-2013. We found that average scale efficiency was 88%, which means that Czech commercial banks were of an inappropriate size, especially the largest banks.

Measuring the financial efficiencies and performances of Turkish funds

2010 ◽  
Vol 60 (3) ◽  
pp. 295-320 ◽  
Author(s):  
F. Gökgöz
Keyword(s):  
Mutual Funds ◽  
Returns To Scale ◽  
Scale Efficiency ◽  
Portfolio Performance ◽  
Data Envelopment ◽  
Performance Indices ◽  
Programming Technique ◽  
Dea Models ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Measuring the financial efficiencies of mutual funds in emerging markets has played an important role in finance literature. Charnes et al. (1978) advocated Data Envelopment Analysis (DEA), a valuable mathematical programming technique, which is used to measure the technical, pure and scale efficiencies of decision making units. The general form of DEA is the CCR model that depends on the assumption of constant returns to scale. Subsequently, Banker et al. (1984) developed an alternative DEA model which includes a variable returns to scale approach. The aim of this study is to measure and compare the financial efficiencies of Turkish securities and pension funds in the 2006–2007 period. In this respect, 36 securities mutual funds (SMFs) and 41 pension mutual funds (PMFs) have been evaluated comparatively according to classical portfolio performance measures and DEA models. Results from performance indices and DEA models reveal that PMFs have higher portfolio performances and financial efficiencies than SMFs in the 2006–2007 period. However, SMFs and PMFs have shown considerable increases in efficiency in the 2006–2007 period according to CCR and BCC models. Of the 77 funds studied, 23 funds in 2007 and 20 funds in 2006 demonstrated scale efficiency. Furthermore, the input ratios should be considerably improved for 2006 and 2007. But, mostly the output values of the funds were found to have remained unchanged in the case of PMFs and SMFs in 2007. The output ratios for 2006 should be considerably improved, especially in the case of SMFs. Finally, the DEA method is evaluated as a substantial quantitative tool for investors in analysing the financial efficiencies of funds in the capital markets.

scholarly journals Applying DEA in Analysing the Efficiency of Top Manufacturing Companies in Pakistan

2011 ◽  
Vol 1 (2) ◽  
pp. 225
Author(s):  
Izah Mohd Tahir ◽  
Mehran Ali Memon
Keyword(s):  
Technical Efficiency ◽  
Returns To Scale ◽  
International Markets ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Manufacturing Companies ◽  
Critical Elements ◽  
Input Variables ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

The efficiency of manufacturing companies is one of the critical elements for its competitiveness in the domestic as well as international markets. Previous research on efficiency measurement usually adopts Data Envelopment Analysis (DEA) approach. Therefore this paper is aimed to analyse the efficiency of 14 top manufacturing companies in Pakistan for a five year period from 2006 to 2010. Data of top 14 manufacturing companies are gathered from OSIRIS database. DEA method is applied using both the Constant Returns to Scale (CCR) and Variable Returns to Scale (BCC) models to find the overall efficiency, technical efficiency and scale efficiency. In this paper we use two input variables (total expenses and total assets) and two output variables (sales and profit before tax). The results under CCR method show that only one company is considered technically efficient while the average overall technical efficiency varies from 0.64 to 0.99. Company number 5 (NRL) demonstrates the best performance for all years under study.

scholarly journals Efficiency and productivity of Vietnamese pangasius processing and exporting firms

2020 ◽  
Vol 4 (3) ◽  
pp. First
Author(s):  
Nguyễn Ngọc Duy
Keyword(s):  
Returns To Scale ◽  
Scale Efficiency ◽  
Technological Advancement ◽  
Resource Use Efficiency ◽  
Exporting Firms ◽  
Use Efficiency ◽  
Constant Returns To Scale ◽  
Efficiency And Productivity ◽  
Variable Returns To Scale

This study aims to measure the efficiency and productivity of Vietnamese pangasius processing and exporting firms, using variables of assets and liabilities in 2009-2014. The results show that the average resource use efficiency of the firms in this period is about 67.7% with a constant returns-to-scale, 79.4% with a variable returns-to-scale, and a scale efficiency (SE) of 85.5%. Firms need to increase their efficiency by 14.5% to achieve the optimal SE. More than half of the firms have efficiency lower than the industry average, suggesting that they were wasting their asset and liability resources, especially the long-term debt. The improvement of technical efficiency and technological advancement on average help increase total factor productivity by 14.1%. About 40% of firms experienced a decline in average productivity and 60% experienced an increase. This research, therefore, recommends firms to use there resources economically or efficiently, especially the long-term debt. In addition, firms also need to improve their technology to boost productivity, thereby enhancing their competitiveness.

scholarly journals DATA ENVELOPMENT ANALYSIS (DEA) APPROACH FOR ASSESSING TECHNICAL, ECONOMIC AND SCALE EFFICIENCY OF BROILER FARMS

2021 ◽  
Vol 52 (2) ◽  
pp. 291-300
Author(s):  
Fardos A.M. Hassan
Keyword(s):  
Returns To Scale ◽  
Sampling Technique ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Policy Makers ◽  
Education Experience ◽  
Level Of Training ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

This study was surveyed and evaluated technical, economic and scale efficiency of broiler farms in Egypt using DEA technique. So as to accomplish the specified aim, stratified random sampling technique was utilized to gather information from 150 broiler farms. The results showed that mean technical efficiencies of broiler farms were 0.915 and 0.985 under constant returns to scale (CRS) and variable returns to scale (VRS) respectively, implying that on average the farms could reduce input utilization by 8.5% and 1.5% for production level of output to be technically efficient. Notably, 48.7% of the farms were estimated fully technical efficient under VRS-model. The mean allocative and economic efficiency of the farms were assessed as 0.941 and 0.918 respectively, with only 2% of the farms were fully allocative and economic efficient. Furthermore, the average scale efficiency was 0.929 with the majority of broiler farms (82%) were operating with increasing returns to scale. The estimated Tobit regression showed that farmer's age, education, experience, access to extension services, and level of training were the most significant variables contributing to the disparities in efficiency of broiler farms. Such results are useful for extension workers and policy makers so as to guide policies towards expanding efficiency. 

scholarly journals Efficiency Analysis of East Asian Zinc Smelters and the Effects of Capacity and Bonus Zinc on Efficiency

2019 ◽  
Vol 5 (1) ◽  
pp. 4 ◽  
Author(s):  
Ha Park ◽  
Daecheol Kim
Keyword(s):  
Returns To Scale ◽  
Labor Cost ◽  
Efficiency Analysis ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Iron Aluminum ◽  
Tobit Regression Analysis ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Non-ferrous metals are widely used as basic materials in various industrial fields, and zinc is a metal that is produced and used next to iron, aluminum, and copper. In this study, DEA (data envelopment analysis) was applied to measure the efficiency of 43 zinc smelters in three countries in East Asia: Korea, China, and Japan. The constant returns to scale (CRS) and the variable returns to scale (VRS) models, and the slack-based measure (SBM) were used for the analysis. As a result of the efficiency analysis, there were three efficient zinc smelters in the CRS model, 14 in the VRS model and 14 in the SBM. The average efficiency was 0.458 based on the SBM, which indicates that there is room for improvement in efficiency. In addition, the average scale efficiency value was 0.689, showing the scale to be inefficient. Therefore, it can be seen that the labor cost and the energy cost must be brought to an appropriate level. The Tobit regression analysis was used to analyze the causes of efficiency. The greater the capacity and the larger amount of bonus Zn of the refinery, the higher the efficiency of the refinery.

scholarly journals The Effects of Maturity of Project Portfolio Management and Business Alignment on PMO Efficiency

2019 ◽  
Vol 11 (1) ◽  
pp. 238 ◽  
Author(s):  
Joong Hoon Ko ◽  
Daecheol Kim
Keyword(s):  
Portfolio Management ◽  
Returns To Scale ◽  
Efficiency Analysis ◽  
Scale Model ◽  
Scale Efficiency ◽  
Project Portfolio ◽  
Project Portfolio Management ◽  
Factors Affecting ◽  
Business Goals ◽  
Constant Returns To Scale

The purpose of this research is to analyze efficiencies of project management offices (PMOs) using the data envelopment analysis (DEA). As the post-analysis of the efficiency analysis, the causal factors affecting the efficiencies of PMOs were tested. 87 PMOs were used to analyze their efficiencies. In the constant returns-to-scale model, 11 PMOs were completely efficient and 76 PMOs were inefficient. In the variable returns-to-scale (VRS) model, 26 PMOs were efficient and 61 PMOs were inefficient. The efficiency analysis by the DEA has the advantage of deriving the scale efficiency for each DMU. From the result of the post-analysis, it was found that the PMO efficiency was positively influenced by the project portfolio management maturity (PPMM) and the degree of strategic alignments with the business goals. In conclusion, by improving PPMM and strengthening the strategic alignments with business goals, higher efficiency and performance of the PMO can be expected.

scholarly journals The Evolution of Efficiency in Costa Rican Banking System 2005-2015: Evidence from Data Envelopment Analysis

2016 ◽  
Vol 34 (2) ◽  
pp. 47-58
Author(s):  
Andrés Salas-Alvarado
Keyword(s):  
Data Envelopment Analysis ◽  
Returns To Scale ◽  
Banking System ◽  
Costa Rican ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Net Use ◽  
Private Banks ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

In this study the technical and scale efficiency of Costa Rican banking system is estimated for the 2005-2015 period, through the Data Envelopment Analysis (DEA). The estimations are within the approach of variable returns to scale with slacks developed by Banker, Charnes, and Cooper (1984) and the constant returns to scale approach developed by Charnes, Cooper, and Rhodes (1978). Efficiency scores were estimated annually for each bank to get the average for state banks, private banks, and the whole system. The inputs and outputs considered in the DEA model were defined through the intermediation approach. Through the application of DEA was concluded that a) for the whole system there are no clear efficiency improvements during the period analyzed, b) the most efficient banks were Banco BCT and Banco General, c) private banks were on average more efficient than state banks and d) the goods of net use were, on average, the input with bigger slack.

scholarly journals Energy Requirement Optimization of Greenhouse Vegetable Production Using Data Envelopment Analysis (DEA) Method in Algeria

2020 ◽  
Vol 23 (2) ◽  
pp. 60-66
Author(s):  
Ahmed Nourani ◽  
Abdelaali Bencheikh
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Returns To Scale ◽  
Scale Model ◽  
Energy Requirements ◽  
Data Envelopment ◽  
Greenhouse Vegetable ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale ◽  
Decision Making Units

AbstractAlgeria has recently experienced an important agricultural development in terms of gardening in plastic greenhouses thanks to the favourable factors (climatic conditions, etc.). In order to optimize the energy requirements, data from 29 farmers were collected, who qualitatively represent the greenhouse vegetable producers from the most productive sub-provinces of Biskra region (south of Algeria). Considering the various parametric and non-parametric methods for energy consumption optimization, data envelopment analysis is the most common non-parametric method applied. Results showed that the mean radial technical efficiency assumptions of the samples under constant returns to scale and variable returns to scale models were 0.88 and 0.98, respectively. The 51.72% of decision-making units were efficient on the basis of the constant returns to scale model; 79.31% decision-making units were observed efficient on the basis of variable returns to scale model. Calculation of optimal energy requirements for vegetable greenhouse indicated that 108.50 GJ·ha−1 can be saved on machinery (1.38 GJ·ha-1); diesel fuel (4.68 GJ·ha−1); infrastructure (9.35 GJ·ha−1); fertilizers (17.08 GJ·ha−1); farmyard manure (12.05 GJ·ha−1); pesticides (3.93 GJ·ha−1); and electricity (60.03 GJ·ha−1).

DEA Window Analysis of Insurance Sector Efficiency in the Republic of Serbia

2020 ◽  
Vol 58 (3) ◽  
pp. 291-310
Author(s):  
Zlata Đurić ◽  
Milena Jakšić ◽  
Ana Krstić
Keyword(s):  
Financial Stability ◽  
Theoretical Research ◽  
Insurance Companies ◽  
Scale Efficiency ◽  
Financial Investment ◽  
Main Research ◽  
Insurance Sector ◽  
Window Analysis ◽  
The Republic ◽  
Dea Window Analysis

Abstract Insurance market is characterized by growing competition. This has imposed needs relating to the continuous capacity building of insurance companies, the continuous improvement of operating results and the assessment of the effects of insurers’ financial investment. The ultimate goal of these activities is to implement the planned goals and achieve positive business results. It is evident that the financial stability and efficiency of the insurance sector strengthens the confidence of citizens in this type of financial intermediaries. Bearing in mind the importance of the insurance sector for the financial system and economic system growth and development, the research subject is the analysis of the insurance sector efficiency in the Republic of Serbia. The main research objective is to look at the insurance sector efficiency through the performance analysis of nine selected insurance companies in the period 2007-2018, using DEA window analysis. The analysis and systematization of theoretical research findings, along with empirical data interpretation, description and comparison yielded results pointing to very poor performance of the insurance sector as a whole, because in all years of the observed period the relative average efficiency (technical, pure technical and scale efficiency) was below 100%, especially in the period 2015-2018.

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