Showing papers by "William W. Cooper published in 1997"
TL;DR: In this paper, Cone Ratio DEA (Data Envelopment Analysis) models are suggested for monitoring and/or early warning systems to be used by bank regulatory agencies. Illustrative examples are developed from data on 1984 and 1985 performances of the 16 largest banks in Texas.
149 citations
TL;DR: In this paper, the authors discuss recent work in developing scalar measures of inefficiency which comprehend all inefficiencies, including non-zero slacks, and are readily interpretable and easily used in a wide variety of contexts.
138 citations
TL;DR: A survey of the current state of the literature in management science/operations research approaches to air pollution management can be found in this article, where the authors provide some of the institutional and legal framework needed to understand the continuing regulatory efforts in United States.
111 citations
TL;DR: In this article, a neural network artificial intelligence model was developed in cooperation with the Texas Department of Insurance as part of an early warning system for predicting insurer insolvency, which was applied to a collection of all domestic property and casualty insurance companies which became insolvent between 1987 and 1990.
Abstract: This paper presents a neural network artificial intelligence model developed in cooperation with the Texas Department of Insurance as part of an early warning system for predicting insurer insolvency. A feed-forward back-propagation methodology is utilised to compute an estimate of insurer propensity towards insolvency. The results are then applied to a collection of all Texas domestic property and casualty insurance companies which became insolvent between 1987 and 1990 and the goal of predicting insolvency three years ahead of time. The results show high predictability and generalisability of results for the purpose of insolvency prediction, suggesting that neural networks may be a useful technique for this and other purposes.
38 citations
TL;DR: In this paper, the orientation is changed from selection to evaluation and the dual variables associated with goal programming are brought into play for this purpose, where closeness to risk and return objective is measured in sums of absolute deviations.
30 citations
24 citations
7 citations
01 Jan 1997
TL;DR: In this article, the Bowman paradox was investigated in the context of mutual fund performance analysis and it was shown that the source of the negative relations between risk and return evaluations is in the return rather than the risk evaluations.
Abstract: Evaluations of publicly announced investment strategies of open-end mutual funds were secured from a questionnaire sent to brokers and editors of financial newsletters. Ex Ante evaluations secured in this manner are compared with ex post performance over the period 1984-1988 and rated via data from Morningstar, Inc., and Business Week on mutual fund Performances over this same period. The present study is designed so that separations can be effected between risk and return evaluations and Performance over all pertinent ex ante and ex post pairings. Ex ante evaluations of risk and return are found to be positively correlated—as posited in the finance, decision theory and economics literatures—but their ex post pairings are negatively related. Somewhat surprisingly, ex ante to ex post evaluations of risk are positively correlated while ex ante to ex post evaluations of return are negatively correlated. The source of the ex ante to ex post negative relations is therefore in the return rather than the risk evaluations. This casts additional light on the Bowman Paradox (and related topics) which have been extensively studied in the Strategic management literature. It also adds to these paradoxes and suggests programs for further research in a manner that is discussed in the addendum to this paper.
6 citations