A study on the financial efficiency analysis method by redesigning the DEA model

Jeong-Hun Sin ()
Additional contact information
Jeong-Hun Sin: Graduate School of Hanyang University

OPSEARCH, 2020, vol. 57, issue 2, No 5, 347-363

Abstract: Abstract The purpose of this study is to measure the financial efficiency of firms considering both input and procurement capital. We propose a new method called three-dimensional data envelopment analysis model and conducted an efficiency analysis of 33 companies in Korea manufacturing auto parts. The results of the study are summarized as follows. Even if the business performance generated by the company is more efficient than the input assets, many inefficient companies exist compared with the procurement capital. Meanwhile, management performance compared with input assets was inefficient; however, there were also companies that were efficient in terms of procurement capital. Therefore, when analyzing the efficiency of a company, efficiency methodology and measurement values that consider both input and procurement capital are needed. This study presents a new measurement methodology based on this point and analyzes the current financial situation of each decision-making unit through return-to-scale analysis and suggests financial improvement direction.

Keywords: Data envelopment analysis; Efficiency; Three-dimensional data envelopment analysis (search for similar items in EconPapers)
JEL-codes: G30 M41 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12597-019-00433-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:opsear:v:57:y:2020:i:2:d:10.1007_s12597-019-00433-9

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/12597

DOI: 10.1007/s12597-019-00433-9

Access Statistics for this article

OPSEARCH is currently edited by Birendra Mandal

More articles in OPSEARCH from Springer, Operational Research Society of India
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().