Financial efficiency analysis of Hungarian agriculture, fisheries and forestry sector

Veronika Fenyves, Tibor Tarnóczi, Zoltán Bács, Dóra Kerezsi, Péter Bajnai and Mihály Szoboszlai
Additional contact information
Veronika Fenyves: Institute of Accounting and Finance, Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary
Tibor Tarnóczi: Institute of Accounting and Finance, Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary
Zoltán Bács: Institute of Accounting and Finance, Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary
Dóra Kerezsi: Institute of Accounting and Finance, Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary
Péter Bajnai: Institute of Accounting and Finance, Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary
Mihály Szoboszlai: Hungarian National Bank, Hungary

Agricultural Economics, 2022, vol. 68, issue 11, 413-426

Abstract: In this study, we examine the efficiency of companies in Hungary's agriculture, fisheries and forestry sector. We analysed corporate efficiency by using stochastic frontier analysis (SFA). We used two methods to perform the SFA calculations - the Cobb-Douglas and translog functions. The result variable for the SFA calculation was gross value added (GVA), and the explanatory variables were tangibles, material costs, employee costs and other costs. The original database contained cross-sectional and time series data and was transformed into a panel database. We used the maximum log-likelihood method for parameter estimation. We performed the efficiency analysis in the case of the Cobb-Douglas and translog functions in two ways - first, without z variables (factor effects) and second, considering different factors (subsectors, workforce categories, ranking by total assets and ranking by total sales). Taking z variables into account increased the value of the efficiency coefficients. The latter model's results show that the companies' average performance in the sector examined was more than 70%. Further calculations also showed that the subsectors of the agriculture, fisheries and forestry sector differed in efficiency scores. The larger companies operated more efficiently than the smaller ones in the sector examined.

Keywords: sectoral analysis; performance analysis; production functions; stochastic frontier analysis (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://agricecon.agriculturejournals.cz/doi/10.17221/125/2022-AGRICECON.html (text/html)
http://agricecon.agriculturejournals.cz/doi/10.17221/125/2022-AGRICECON.pdf (application/pdf)
free of charge

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:caa:jnlage:v:68:y:2022:i:11:id:125-2022-agricecon

DOI: 10.17221/125/2022-AGRICECON

Access Statistics for this article

Agricultural Economics is currently edited by Ing. Zdeňka Náglová, Ph.D.

More articles in Agricultural Economics from Czech Academy of Agricultural Sciences
Bibliographic data for series maintained by Ivo Andrle ().