Financial performance of the textile industry in India: the case of Haryana

Purpose This study aims to evaluate the financial performance of the textile industry in Haryana located in the northern part of India. Design/methodology/approach Input-oriented Cooper, Charnes and Rhodes (CCR) and Banker, Charnes and Cooper (BCC) techniques of data envelopment analysis, as well as the return to scale (RTS) technique, were used to conduct the analysis. Findings The findings show that textile units in Haryana have hugely underperformed financially with a consolidated technical efficiency score of only 0.35. Both private and public limited textile companies with respective scores of 0.46 and 0.24 are technically efficient. Public limited textile companies are more efficient than private limited companies. Private limited textile companies need to increase their input scale because they are operating at an increasing return to scale while public limited textile companies have to lower their input scale because most companies are operating at a decreasing return to scale to enhance their efficiency. Originality/value The study can assist in decision-making to all key stakeholders (Shareholders, management, government, tax authorities, debtors and creditors, among others) by identifying efficient and inefficient companies. Appropriate policies can be framed based on that knowledge.

Data Envelopment Analysis and Panel Regression in Analysing Technical Efficiency and Its Determinants of the Palm Oil Products-Based Manufacturing Subsector

This study measures the technical efficiency score of the manufacturing sector of the palm oil products-based subsector in Malaysia and investigates the major determinants that influence efficiency. Based on the Industrial Manufacturing Survey, this study explores the data from 2000 to 2015 over sixteen years, with a total of eleven subsectors of palm oil products-based. The first stage of the study is carried out with a data envelopment analysis (DEA) to calculate the technical efficiency score, which is considered a dependent variable. The second stage of the study uses a panel regression model to examine the determinants of efficiency comprise the variable capital-labour ratio, research and development, information communication technology, training, and skilled labour. The study findings show that most of the palm oil products-based subsectors are not operating efficiently. Skilled labour, technical and supervisory, and professional is one of the main determinants contributing to the efficiency level. The variable capital-labour ratio though significant, but harms the efficiency level. The moderating effects show that skilled technical and supervisory workers relatively affect the food industry’s efficiency larger than the non-food industry. Therefore, the industry still has room to improve efficiency by utilising input efficiently. Moreover, the efforts involve organisational management, equipped appropriate technology and related factors that will improve efficiency, increase productivity and competitiveness of palm oil products-based industries.

Do technically efficient surgeons continue to provide active clinical services in a university hospital?

It is difficult for university hospitals to recruit and retain technically efficient surgeons because their missions include teaching and research as well as clinical services. The authors hypothesized that technically efficient surgeons do not continue to provide active clinical services in a university hospital. The authors collected data from all the surgical procedures performed at Teikyo University Hospital from April 1 through September 30 in 2013–2018. The dependent variable was defined as a length of each surgeon’s active clinical services measured by month. Data envelopment analysis was employed to calculate each surgeon’s technical efficiency score. Five control variables were selected; experience, medical school, surgical volume, gender, and academic ranks. Multiple regression analysis was performed. Efficiency scores had significantly negative association with length of active clinical services. Experience and surgical volume had significantly positive association with length of active clinical services. The other coefficients of control variables were insignificant. Technically efficient surgeons provide shorter active clinical services in a university hospital.

Significant inefficiency in running community health systems: The case of health posts in Southwest Ethiopia

Background Although much has been documented about the performance of the health extension program, there is a lack of information on how efficiently the program is running. Furthermore, the rising cost of health services and the absence of competition among publicly owned health facilities demands strong follow up of efficiency. Therefore, this study aimed to assess the technical efficiency of the health posts and determinants in Southwestern Ethiopia. Methods and materials We used data for one Ethiopian fiscal year (from July 2016 to June 2017) to estimate the technical efficiency of health posts. A total of 66 health posts were included in the analysis. We employed a two-stage data envelopment analysis to estimate technical efficiency. At the first stage, technical efficiency scores were calculated using data envelopment analysis program version 2.1. Predictors of technical efficiency were then identified at the second stage using Tobit regression, with STATA version 14. Results The findings revealed that 21.2% were technically efficient with a mean technical efficiency score of 0.6 (± 0.3), indicating that health posts could increase their service volume by 36% with no change made to the inputs they received. On the other hand, health posts had an average scale efficiency score of 0.8 (± 0.2) implying that the facilities have the potential to increase service volume by 16% with the existing resources. The regression model has indicated average waiting time for service has negatively affected technical efficiency. Conclusion More than three-quarters of health posts were found inefficient. The technical efficiency score of more than one-third of the health posts is even less than 50%. Community mobilization to enhance the uptake of health services at the health posts coupled with a possible reallocation of resources in less efficient health posts is a possible approach to improve the efficiency of the program.

The Role of Technical Efficiency Achieving Sustainable Development: A Dynamic Analysis of Norwegian Dairy Farms

Growing environmental concerns have prompted governments to make sustainable choices in agricultural resource use. Evaluating the sustainability of agricultural systems is a key issue for the implementation of policies and practices aimed at revealing sustainability. This study aimed to evaluate the performance of Norwegian dairy farms, accounting for marginal effects of environmental (exogenous) variables. We adopted the dynamic parametric approach within the input distance function framework to estimate the performance of Norwegian dairy farms, focusing on the technical efficiency and determinates. For comparison, we also estimated the static parametric model, which was used by previous studies. We used unbalanced farm-level panel data for the period 2000–2018. The result shows a mean technical efficiency score of 0.92 for the dynamic model and 0.87 for the static models. The empirical result shows that the previous studies that focused on the static model reported a biased result on the performance of dairy farms. The dynamic efficiency score suggests that Norwegian dairy farms can reduce the input requirement of producing the average output by 8% if the operation becomes technically efficient. The environmental variables have a different effect on the performance of the farmers; thus, policymakers need to place special focus on these variables for the sustainable development of the dairy sector.

Measurement of Technical and Scale Efficiency of Dairy Farms in Pune District of Maharashtra: Data Envelopment Analysis Approach

The present study intended to determine the technical and scale efficiency of sample dairy farms for evaluating their performance. Data Envelopment Analysis (DEA) technique was used to estimate the technical and scale efficiency of 80 each of member and nonmember dairy farms in the Pune district of Maharashtra state during 2019. Technical efficiency score further partitioned into pure technical efficiency and overall technical efficiency. The technical efficiency score was more for member dairy farms as compared to the non-members under the assumption of constant return to scale (CRS) and variable return to scale (VRS). It highlighted that the non-members of dairy cooperatives had more potential to reduce the input use without affecting the output level compared to the member group. It was also observed that the technical efficiency under the CRS assumption was more than VRS for both member and non-member groups. It revealed that the farms were scaled inefficient (SE<1) and not operating at optimal scale. The study further revealed a positive relationship between technical efficiency and herd size. It also revealed that the resource-saving potential due to the scale effect. So, it supported the policy of providing technical advice on the use of feed and fodder resources, better management practices, and increasing the herd size to increase the technical and scale efficiency.

EFISIENSI TEKNIS BANK DI INDONESIA: KELOMPOK BUKU I-IV

Efisiensi Bank merupakan salah satu ukuran kinerja bank. Bank harus berusaha mengelola input dan output bank secara optimal. Efisiensi bank yang optimal dapat dilihat dari tingkat efisiensi teknis bank. Penelitian ini bertujuan mengukur efisiensi teknis bank di Indonesia. Penelitian dilakukan pada 38 bank berdasarkan kelompok bank BUKU I-IV periode 2012 – 2018 dengan metode DEAP. Variabel input dan output bank menggunakan pendekatan Intermediasi bank. Variabel input bank yaitu price of fund, price of labor and price of capital. Sedangkan output bank yaitu loans. Pengukuran efisiensi teknis menggunakan DEAP sebagai pengukur efisiensi secara modern. Hasil penelitian metode DEAP dengan model Constant Return to Scale (CRS) menunjukkan bahwa Bank BNI dan bank BCA paling efisiensi secara teknis dibanding bank lainnya dengan efisiensi teknis 100%. Bank kelompok BUKU IV secara umum telah mencapai efisiensi teknis sedangkan Bank kelompok BUKU I-III belum mencapai efisiensi teknis. Pada periode 2018, dalam mencapai efisiensi teknis maka kelompok bank BUKU I-III harus melakukan kebijakan dengan cara mengendurkan atau mengurangi biaya dua input. Kedua input variabel yaitu input price of fund dan price of capital karena kedua input tersebut yang membuat bank belum mencapai efisiensi teknis. Efficiency of Bank is a measure of bank performance. The banking sector must try to regulate bank inputs and outputs optimally. Optimal efficiency can be seen from the bank's technical efficiency score.. This study aims to measure the technical efficiency of banks in Indonesia. The study was conducted on 38 banks based on the BUKU I-IV, period 2012 - 2018 with the DEAP method. Bank input and output variables use the bank intermediation approach. Bank input variables are price of funds, price of labor and price of capital. Bank output is loans. Measurement of technical efficiency using DEAP as a measure of modern efficiency. The DEAP method research results with the Constant Return to Scale (CRS) model show that BNI Bank and BCA bank are the most technically efficient compared to other banks with 100% technical efficiency. BUKU IV group banks in general have achieved technical efficiency while BUKU I-III group banks have not technical efficiency. In achieving technical efficiency, the BUKU I-III bank group must carry out policies by relaxing or reducing the costs of two inputs. The two variable inputs are input price of funds and price of capital because these two inputs have made the bank not yet reached technical efficiency.

Measuring the Efficiency of Public Hospitals in Kuwait: A Two-Stage Data Envelopment Analysis and a Qualitative Survey Study

The recent drop in oil prices has challenged public sector financing in Kuwait. Technical and scale efficiency scores for fifteen public hospitals in Kuwait from 2010 to 2014 were estimated using a two-stage data envelopment analysis (DEA). Technical efficiency scores were regressed against institutional characteristics using Tobit regression to investigate the determinants of efficiency differences in hospitals. Semi-structured interviews were also carried out with fourteen public and private hospital managers to qualitatively explore their perceptions and experience about about factors affecting hospital efficiency. The mean technical efficiency score for all hospitals was 85.8%, an improvement of 2% since 2010. The mean pure technical efficiency score was 79.6%, improving from 75% in 2010 to 81.2% in 2014. The mean scale efficiency score was 91.8%, improving from 87.6% in 2010 to 94.2% in 2014. Only three hospitals were constantly technically and scale efficient. Tobit regression showed that hospital efficiency was significantly associated with the average length of patient stay. Hospitals with more than 400 beds were potentially more technically and scale efficient. The qualitative study revealed that external factors affecting efficiency commonly included implemention of legislative changes and decreasing bureaucracy, while internal factors included increasing bed capacity and improving qualifications and training of human resources. Most public hospitals in Kuwait were not technically and scale efficient, but improvements were observed. Potential factors that affected the efficiency of hospitals in Kuwait were identified. These findings are useful to decision-makers in Kuwait for developing strategies to improve public hospital efficiency.

Technical Efficiency of White Leg Shrimp Production Using Data Envelopment Analysis (DEA), Case Study: Jiangsu Province, China

Production of white leg shrimp (Penaeus vannamei) is a very important economic activity in the overall farming system in China. In spite of the present successes witnessed by white leg shrimp farming, there are many challenges (disease, overfeeding, effluent discharge, lack of technical knowledge, low educational level, inexperienced managers, the high cost of production among others) continuing to set back the growth of this sector in China. The study was conducted in Jiangsu province because is one of the leading producing provinces of White-leg shrimp (Penaeus vannamei) in China. The research examines the technical efficiency level of white leg shrimp production in Jiangsu Province, China. Three seasonal crops data in 2016 crop year were collected from 52 white leg shrimp farmers in the study area. All data were coded in Excel 2007 spreadsheet package and analysed with SPSS version 20 and DEAP version 2.1 software at 95% confidence level. Descriptive statistical, regression and Data Envelopment Analyses (DEA) were used to analyse the data. Results revealed an average technical efficiency score of 83.1%, under a constant return to scale. Majority of the farmers (62%) were technically inefficient in utilising input resources with technical efficiency score less than 1. Twenty farmers were technically efficient with technical efficiency (TE) score equal to 1. Feed, fingerlings and chemical showed significant negative influence on technical efficiency at 5% level of significance while labor, fixed cost and age exhibited strong negative impact at 1% level of significance.

Technical Efficiency and the Determinants of Price to Book Value: An Empirical Study of Category-IV Banks in Indonesia Stock Exchange

This research aimed to empirically determine the value relevance of price to book value (PBV) and technical efficiency (TE) within Category-IV banks in Indonesia Stock Exchange in the time horizon of 1Q2007 to 4Q2015. This research uses time series and quarterly-published financial statement from the listed Category-IV banks. In term of variables that determine PBV by using panel least square, the research reveals that pre-provision operating profit (PPOP) and return on total assets (ROTA) have positive and significant effect towards PBV, while non-performing loan (NPL) and dividend yield have negative and significant effect towards PBV. Contrarily, firm size has negative and insignificant effect towards PBV. Additionally, the result of data envelopment analysis (DEA) which is used to measure technical efficiency, indicates that PT. Bank Mandiri Tbk. (BMRI) is the most efficient Category-IV bank. BMRI led with average technical efficiency score of 98.95%, followed by PT. Bank Rakyat Indonesia Tbk. (BBRI) 98.02%, PT. Bank Negara Indonesia Tbk. (BBNI) 96.04% and PT. Bank Central Asia Tbk. 94.94%. The average technical efficiency of Category-IV banks within the period of research is 96.99%.