Journal ArticleDOI
Towards a general non-parametric model of corporate performance
TLDR
In this paper, a non-parametric model of corporate performance is presented, which obviates the need for specification of statistical distributions or functional form, instead it seeks to identify outstanding performance in a number of dimensions, and to measure the performance of less efficient firms in relation to their efficient peers.Abstract:
Many problems arise in applying conventional statistical methods to accounting ratios, often relating to assumptions about the statistical distribution of ratios. This paper presents a non-parametric model of corporate performance which obviates the need for specification of statistical distributions or functional form. Instead it seeks to identify outstanding performance in a number of dimensions, and to measure the performance of less efficient firms in relation to their efficient peers. The method is illustrated with data relating to 27 failed UK companies and their peers. The strengths and weaknesses of the model are discussed, and it is concluded that, although the model is not a panacea for the problems of interpreting corporate performance, it does offer a useful addition to the armoury of the financial statement analyst. In particular, it offers a technology which is intermediate between the crudity of simple ratio analysis and the complexity of regression analysis.read more
Citations
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Journal ArticleDOI
Alternative methods to examine hospital efficiency: data envelopment analysis and stochastic frontier analysis.
TL;DR: It is argued that differences in efficiency scores across different methods may be due to random “noise” and reflect data deficiencies, and several specifications should be used to develop ranges of inefficiency to act as signalling devices rather than point estimates.
Journal ArticleDOI
A survey on bank branch efficiency and performance research with data envelopment analysis
Joseph C. Paradi,Haiyan Zhu +1 more
TL;DR: In this paper, a survey of 80 published DEA applications in 24 countries/areas that specifically focus on bank branches is presented, and key issues related to the design of DEA models in these studies are discussed.
Journal ArticleDOI
A study of DEA models without explicit inputs
TL;DR: This paper presents a study on building DEA models without explicit inputs, so-called DEA-WEI models, which are applicable to the evaluation applications where inputs are not directly considered.
Journal ArticleDOI
Data envelopment analysis applied to quality in primary health care
TL;DR: A model of primary care performance which is based on the premise that certain measurable quality indicators can act as proxies for outcome is set out, and it is argued that DEA can handle multiple dimensions of performance more comfortably, and is less vulnerable to the misspecification bias that afflicts statistically based models.
Journal ArticleDOI
Modeling the operating efficiency of banks: a nonparametric methodology
Minwir Al-Shammari,Anwar Salimi +1 more
TL;DR: In this paper, a modified version of the data envelopment analysis (DEA) was used to evaluate the operating efficiency of banks using a non-parametric methodology known as the data envelope analysis.
References
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Journal ArticleDOI
Measuring the efficiency of decision making units
TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
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Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis
TL;DR: The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs as mentioned in this paper.
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Financial ratios, discriminant analysis and the prediction of corporate bankruptcy
TL;DR: In this paper, a set of financial and economic ratios are investigated in a bankruptcy prediction context wherein a multiple discriminant statistical methodology is employed, and the data used in the study are limited to manufacturing corporations, where an initial sample of sixty-six firms is utilized to establish a function which best discriminates between companies in two mutually exclusive groups: bankrupt and nonbankrupt firms.
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Financial ratios and the probabilistic prediction of bankruptcy
TL;DR: In this paper, the authors present some empirical results of a study predicting corporate failure as evidenced by the event of bankruptcy, and the methodology is one of maximum likelihood estimation of the so-called conditional logit model, in which the data set used in this study is from the seventies (1970-76).