Search results

1 – 10 of over 2000
Open Access
Article
Publication date: 4 September 2018

Hyunsoo Kim and Chang Won Lee

The purpose of this study is to provide models to analyze the efficiency of programs and efficiency of fundraising to apply the models to non-profit organizations (NPOs) in Korea…

3663

Abstract

Purpose

The purpose of this study is to provide models to analyze the efficiency of programs and efficiency of fundraising to apply the models to non-profit organizations (NPOs) in Korea and to draw out improvement points of inefficiency using data envelopment analysis (DEA).

Design/methodology/approach

Using DEA, this study analyzed the program efficiency and fundraising efficiency of 22 Korean NPOs in the field of humanitarian assistance.

Findings

Of 22 NPOs, 15 were identified as being efficient in the program efficiency and 7 of 15 NPOs were found efficient in the fundraising efficiency. In all, four organizations were found efficient in both the program and the fundraising efficiency. Using CCR and BCC model, this study proposed the cause of inefficiency and state of returns of scale.

Practical implications

This study presents non-profit efficiency evaluation models regarding program efficiency and fundraising efficiency. This study provides the inefficient DMUs with their reference set of efficient DMUs to improve efficiency and the cause of inefficiency, whether the inefficiency is because of the pure technical inefficiency or the scale inefficiency. This study also indicates the state of variable returns to scale to propose the way of improving inefficiency by controlling the scale of inputs. The methods and the results of this study can serve as a model for researchers and practitioners to follow when evaluating efficiency in the NPOs.

Originality/value

This study has the value of performing the empirical studies of efficiency analysis of Korean NPOs and providing non-profits with the model of efficiency analysis in programs and fundraising activities and basis for establishing strategies to improve both efficiencies.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 12 no. 2
Type: Research Article
ISSN: 2398-7812

Keywords

Open Access
Article
Publication date: 30 October 2019

Ignacio Jiménez-Hernández, Gabriel Palazzo and Francisco Javier Sáez-Fernández

The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm).

4667

Abstract

Purpose

The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm).

Design/methodology/approach

In a first stage, data envelopment analysis (DEA) and conditional efficiency analysis techniques are used to assess the relative efficiency level of 409 banks for the 2014-2016 period. The conditional efficiency approach considers environmental variables (that are beyond the manager’s control), which could influence the shape and the level of the boundary of the attainable set. In the second stage, the resulting conditional efficiency scores are correlated with internal variables (those that are under the manager’s control), which might affect the distribution of the inefficiencies. For this purpose, an econometric approach developed by Simar and Wilson (2007) is used.

Findings

First stage scores reveal the heterogeneity of average efficiency within the region. Regarding the factors that may explain the differences in performance in the LatAm banking sector, the results allow us to state that certain internal variables such as bank size, the ratio of loans to total assets and the ratio of non-performing loans show the expected relationship to efficiency, in line with much of the previous literature.

Originality/value

This is the first time that conditional efficiency and Simar and Wilson (2007) approaches have been applied at the same time to analyse the LatAm banking industry.

Details

Applied Economic Analysis, vol. 27 no. 81
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 5 June 2020

Manuela Gonçalves Barros, Marcelo Botelho da Costa Moraes, Alexandre Pereira Salgado Junior and Marco Antonio Alves de Souza Junior

The purpose of this paper is to evaluate the efficiency in financial intermediation and the cost efficiency in banking service of credit unions in Brazil, based on essentially…

1821

Abstract

Purpose

The purpose of this paper is to evaluate the efficiency in financial intermediation and the cost efficiency in banking service of credit unions in Brazil, based on essentially accounting variables, and to analyze the temporal evolution of the efficiency of these cooperatives.

Design/methodology/approach

With a sample of 315 cooperatives over the period from 2007 to 2014, this research uses a two-stage process: application of regression models with panel data to verify which variables are related to the defined outputs, with the reduction of 31 variables to 8 variables in both models; and application of the data envelopment analysis method to obtain an analysis of credit unions’ efficiency.

Findings

The results demonstrate a high level of efficiency in financial intermediation, with low variation over time, associated with a low efficiency in the banking service, in which few cooperatives have remained efficient over time. In addition, the cooperatives with highest efficiency in financial intermediation were also the most efficient in providing services.

Research limitations/implications

This research has some limitations about the capacity of the proxies used to capture the real effect of the variables and assumptions of economic relations resulting in restrictions to generalize the results.

Practical implications

Cooperatives are usually analyzed under just one dimension. By separating the analysis into financial intermediation and banking services, cooperatives that are more efficient in each dimension can be identified, in addition to analyzing the evolution over time. The authors found that efficiency tends to be lower in banking services, and few cooperatives remain at the highest level of efficiency over time in both models.

Social implications

Credit unions provide an important service in the banking and credit market. Therefore, understanding its operation and the characteristics that influence its efficiency allows a better management of the cooperatives themselves and a greater understanding of this important segment of the financial market.

Details

RAUSP Management Journal, vol. 55 no. 3
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 31 December 2011

Hun-Koo Ha, Young-In Jeon and Kyung-Chang Min

The aim of this paper is to show current position of domestic airports and provide an improvement scheme through the comparative analysis of efficiency and social efficiency. We…

Abstract

The aim of this paper is to show current position of domestic airports and provide an improvement scheme through the comparative analysis of efficiency and social efficiency. We used SBM (Slack Based Measure) for efficiency and undesirable output model that is extended from SBM for social efficiency. In addition, window analysis is used for analyzing the trend of the values. For the scope of this study, we analyzed fourteen airports in Korea from 2004 to 2009. In the models, we considered the length of runway, the number of employees and terminal area as input factors, and the number of passengers, the amount of cargo and the number of flights as desirable outputs and directly controllable CO2 emissions from airports as undesirable output. The results show that all of the efficiencies are higher than the social efficiencies and both of them are decreasing by years. To improve social efficiency in 2009, the average amounts of reduced CO2 emissions which account for 48.3% of the total emissions are required.

Details

Journal of International Logistics and Trade, vol. 9 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 6 August 2018

Fekri Ali Shawtari, Milad Abdelnabi Salem and Izzeldin Bakhit

The purpose of this paper is to examine empirically the efficiency types of Islamic and conventional banks. It seeks to show whether the efficiency level of conventional and…

4756

Abstract

Purpose

The purpose of this paper is to examine empirically the efficiency types of Islamic and conventional banks. It seeks to show whether the efficiency level of conventional and Islamic banks significantly differs from each other. In addition, it investigates the influential factors on each type of efficiency.

Design/methodology/approach

The paper utilises the data envelopment analysis in its windows version to estimate the efficiency scores reflecting the time variance and compares between banking models. The paper uses pure technical efficiency (TE) and scale efficiency to achieve the objective of the study. In addition, the panel data technique is adopted to assess the determinants of the efficiency of the banks econometrically.

Findings

The findings of panel regression initially indicate that the pure TE is higher for conventional banks compared to Islamic banks. However, the Islamic banks are more scale efficient than their conventional counterpart. Macro and micro indicators have different impacts on the both types of efficiency. However, the unique factors that show consistent influence on the efficiency types were loans/finance, non-interest income/finance/liquidity and GDP. Furthermore, the determinants are shaped differently for Islamic and conventional banks when the banking model is controlled for.

Originality/value

This paper examines the efficiency types using a unique window analysis approach to examine the types of efficiency with a longitudinal set of data from 1996 to 2011.

Details

Benchmarking: An International Journal, vol. 25 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Open Access
Article
Publication date: 31 March 2019

Kwangwuk Kim, Dong-Hoon Son and Hwa-Joong Kim

In today’s multi-channel distribution environment, it is crucial for the competitiveness of retail stores and companies to improve efficiency of dedicated logistics centers (DLCs…

Abstract

In today’s multi-channel distribution environment, it is crucial for the competitiveness of retail stores and companies to improve efficiency of dedicated logistics centers (DLCs) servicing types of retail outlets such as large retail-stores, super supermarkets, and convenient stores. This paper derives efficiency improvement strategies for DLCs through efficiency analyses. To this end, this paper empirically analyzes the efficiency of DLCs by applying DEA (data envelopment analysis) approaches using real data from a Korean distribution company. In detail, this paper analyzes operations, finance, and service efficiencies of DLCs and performs a comparison analysis on the efficiency between DLCs. Finally, this paper discusses the analysis results considering the DLCs’ characteristics and derives managerial and operational implications.

Details

Journal of International Logistics and Trade, vol. 17 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 2 August 2022

Israa A. El Husseiny

This study aims at evaluating the technical efficiency (TE) of healthcare systems in the Arab region and exploring the key factors that affect the efficiency performance.

1089

Abstract

Purpose

This study aims at evaluating the technical efficiency (TE) of healthcare systems in the Arab region and exploring the key factors that affect the efficiency performance.

Design/methodology/approach

The study applies a two-stage Data Envelopment Analysis (DEA) approach to a sample of 20 Arab countries. In the first stage, a DEA model is used to calculate the TE scores of the examined healthcare systems in 2019 and 2010, following both the output and input orientations of efficiency. In the second stage, a censored Tobit model is estimated to investigate the determinants of healthcare efficiency.

Findings

DEA results of 2019 indicate that achievable efficiency gains of the Arab countries range from 0.4% to 16% under the output and input orientations, respectively. Six countries are efficient under both orientations. Although the average efficiency scores of the Arab countries have deteriorated between 2010 and 2019, Djibouti and Sudan had the greatest efficiency improvements between the two years. Bahrain, Mauritania, Morocco and Qatar proved to be efficient in 2010 and 2019 under the two orientations of efficiency and according to the two DEA specifications followed. The Tobit model reveals that corruption and government health expenditure tend to have an adverse impact on healthcare efficiency.

Originality/value

The author evaluates healthcare efficiency and healthcare's efficiency determinants in the Arab countries. Regardless Arab countries' diversity, these countries are facing common health challenges, including diminishing role of governments in healthcare financing; increased out-of-pocket healthcare spending; poor healthcare outputs and prevalence of health inequities resulting from weak governance institutions. Comparing the efficiency of healthcare systems between 2010 and 2019 gives insights on the potential impact of the Arab spring uprisings on healthcare efficiency. Moreover, examining the determinants of healthcare efficiency allows for better understanding of how to improve the efficiency of healthcare systems in the region.

Details

Journal of Humanities and Applied Social Sciences, vol. 5 no. 4
Type: Research Article
ISSN: 2632-279X

Keywords

Open Access
Article
Publication date: 7 October 2022

Theresa A. Kirchner, Linda L. Golden and Patrick L. Brockett

This longitudinal research examines US symphony orchestra sector organizations to determine individual efficiencies in allocating resources (donations, governmental/private…

1030

Abstract

Purpose

This longitudinal research examines US symphony orchestra sector organizations to determine individual efficiencies in allocating resources (donations, governmental/private funding, etc.) for desirable outputs (concerts, educational programs, community outreach). It provides researchers and managers with a tool for identifying, assessing and mitigating organizational inefficiencies.

Design/methodology/approach

This study assesses relative efficiencies in performing arts organizations using Data Envelopment Analysis (DEA), a widely-used nonparametric data-intensive benchmarking technique that determines an optimal “production frontier” of best-practice organizations among their peers and assesses their abilities to turn multivariate inputs into multivariate desired outputs.

Findings

This analysis highlights efficiency differences in a wide range of orchestras in converting available resources into performance-related outputs. It provides individual arts organizations with useful results for developing practical benchmarks to achieve organizational efficiency improvement.

Research limitations/implications

This study provides constructive benchmarking guidance for improving efficiencies of relatively-inefficient organizations. Future analysis can expand the scope to utilize a two-stage DEA model to provide more specific guidance to arts organizations.

Practical implications

This pragmatic analysis enables arts/culture institutions to assess their organizational efficiencies and identify opportunities to optimize resources in producing social outputs for their target markets.

Social implications

Efficiency improvements enable performing arts organizations to provide additional artistic/social services, with fewer resources, to larger audiences.

Originality/value

This research demonstrates the abilities of DEA analysis to assess both a sector and its individual organizations to determine efficiencies, identify sources of inefficiencies and assess longitudinal efficiency trends.

Open Access
Article
Publication date: 2 December 2016

Juan Aparicio

The purpose of this paper is to provide an outline of the major contributions in the literature on the determination of the least distance in data envelopment analysis (DEA). The…

2161

Abstract

Purpose

The purpose of this paper is to provide an outline of the major contributions in the literature on the determination of the least distance in data envelopment analysis (DEA). The focus herein is primarily on methodological developments. Specifically, attention is mainly paid to modeling aspects, computational features, the satisfaction of properties and duality. Finally, some promising avenues of future research on this topic are stated.

Design/methodology/approach

DEA is a methodology based on mathematical programming for the assessment of relative efficiency of a set of decision-making units (DMUs) that use several inputs to produce several outputs. DEA is classified in the literature as a non-parametric method because it does not assume a particular functional form for the underlying production function and presents, in this sense, some outstanding properties: the efficiency of firms may be evaluated independently on the market prices of the inputs used and outputs produced; it may be easily used with multiple inputs and outputs; a single score of efficiency for each assessed organization is obtained; this technique ranks organizations based on relative efficiency; and finally, it yields benchmarking information. DEA models provide both benchmarking information and efficiency scores for each of the evaluated units when it is applied to a dataset of observations and variables (inputs and outputs). Without a doubt, this benchmarking information gives DEA a distinct advantage over other efficiency methodologies, such as stochastic frontier analysis (SFA). Technical inefficiency is typically measured in DEA as the distance between the observed unit and a “benchmarking” target on the estimated piece-wise linear efficient frontier. The choice of this target is critical for assessing the potential performance of each DMU in the sample, as well as for providing information on how to increase its performance. However, traditional DEA models yield targets that are determined by the “furthest” efficient projection to the evaluated DMU. The projected point on the efficient frontier obtained as such may not be a representative projection for the judged unit, and consequently, some authors in the literature have suggested determining closest targets instead. The general argument behind this idea is that closer targets suggest directions of enhancement for the inputs and outputs of the inefficient units that may lead them to the efficiency with less effort. Indeed, authors like Aparicio et al. (2007) have shown, in an application on airlines, that it is possible to find substantial differences between the targets provided by applying the criterion used by the traditional DEA models, and those obtained when the criterion of closeness is utilized for determining projection points on the efficient frontier. The determination of closest targets is connected to the calculation of the least distance from the evaluated unit to the efficient frontier of the reference technology. In fact, the former is usually computed through solving mathematical programming models associated with minimizing some type of distance (e.g. Euclidean). In this particular respect, the main contribution in the literature is the paper by Briec (1998) on Hölder distance functions, where formally technical inefficiency to the “weakly” efficient frontier is defined through mathematical distances.

Findings

All the interesting features of the determination of closest targets from a benchmarking point of view have generated, in recent times, the increasing interest of researchers in the calculation of the least distance to evaluate technical inefficiency (Aparicio et al., 2014a). So, in this paper, we present a general classification of published contributions, mainly from a methodological perspective, and additionally, we indicate avenues for further research on this topic. The approaches that we cite in this paper differ in the way that the idea of similarity is made operative. Similarity is, in this sense, implemented as the closeness between the values of the inputs and/or outputs of the assessed units and those of the obtained projections on the frontier of the reference production possibility set. Similarity may be measured through multiple distances and efficiency measures. In turn, the aim is to globally minimize DEA model slacks to determine the closest efficient targets. However, as we will show later in the text, minimizing a mathematical distance in DEA is not an easy task, as it is equivalent to minimizing the distance to the complement of a polyhedral set, which is not a convex set. This complexity will justify the existence of different alternatives for solving these types of models.

Originality/value

As we are aware, this is the first survey in this topic.

Details

Journal of Centrum Cathedra, vol. 9 no. 2
Type: Research Article
ISSN: 1851-6599

Keywords

Open Access
Article
Publication date: 31 August 2015

Tae-Hun Kang and Myung-Chul Lee

This paper examines the martingale restriction for the KOSPI 200 index options market. And in cases of the rejections, we investigate the relative market efficiency between stock…

19

Abstract

This paper examines the martingale restriction for the KOSPI 200 index options market. And in cases of the rejections, we investigate the relative market efficiency between stock index and stock index options market, using approximate entropy (ApEn) method proposed by Pincus (1994), which quantifies a complexity, irregularity and unpredictability in time series. The empirical results of this study clearly reject the martingale restriction and regression analyses indicate that the historical returns of underlying index can explain about 25% of the price differences between option-implied and market index prices but the total trading volume can explain only a small portion of the price differences. These results have cast doubt on the informational efficiency of this market. Comparing the relative market efficiency based on ApEn have showed that the complexity or irregularity of KOSPI 200 index is larger than the index options during the entire sample period. But, Examining separately ApEn of the magnitude and the sign time series which compose log-returns document that stock index options market reflect more efficiently the information about the direction of price changes than the stock index market in 2014 and the efficiency of the index options market about the directional information may be affected by directional traders who prefer certain strategies designed by exploiting past stock market movements.

Details

Journal of Derivatives and Quantitative Studies, vol. 23 no. 3
Type: Research Article
ISSN: 2713-6647

Keywords

1 – 10 of over 2000