Efficiency Analysis of Zinc Refining Companies

Ha Sung Park, Tae Youn Kim and Daecheol Kim
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Ha Sung Park: School of Business, Hanyang University, Seoul 04763, Korea
Tae Youn Kim: School of Business, Hanyang University, Seoul 04763, Korea
Daecheol Kim: School of Business, Hanyang University, Seoul 04763, Korea

Sustainability, 2019, vol. 11, issue 22, 1-13

Abstract: Most global zinc firms consist of multiple refineries with various production capacities. However, it is known that efficiency and Bonus Zn are mostly dependent on a firm’s production capacity. Thus, it is important to examine whether there is knowledge transfer of efficiencies and Bonus Zn among refineries within the same company, even if their production capacities are quite different. The Data Envelopment Analysis (DEA) is used to measure efficiency scores of forty-two zinc refineries. To examine whether there is a knowledge transfer about efficiency and Bonus Zn within a firm, a propensity score model is newly applied. Additionally, a regression model is utilized to identify whether this propagation is more effective if refineries are in the same country. It is found that about 86% of the refineries are inefficient, which indicates that there is much room for refineries to improve their performance. From the result, it is identified that the knowledge of efficiency and Bonus Zn is transferred within the company. This transfer is particularly influential when both refineries are located in the same country. We also find that firm’s revenue can be maximized when efficiency is high and the production capacity and/or Bonus Zn are significant.

Keywords: efficiency; Bonus Zn; environmental regulation; production capacity; data envelopment analysis; propensity score model; zinc refining firms (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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