Utilizing DEA in Scarcity Data for Measuring Financial Efficiency of International Transportation Companies

Li-Jen Liu

Abstract


Financial efficiency is important for international transportation companies, since the operation involves a large amount of capital. However, financial efficiency evaluation can be tricky, when it’s difficult to judge input and output weights objectively. Practically speaking, there’s no need to assess wrights when using data envelopment analysis (DEA). In Taiwan, only a few international transportation companies are listed, especially for those are deemed peer decision-making units (DMUs). When applying DEA, there is a critical restriction, which is the DMUs number should be no less than the number summation of inputs and outputs. Otherwise, the restriction problem would make the relative efficiency of DMUs difficult to discriminate. To resolve the scarcity data tie, five period’s financial data of two listed international transportation companies are adopted as ten DMUs. Through varied DEA models, relative inefficient and efficient DMUs will be found. The above situations of DMUs will provide references of the companies to improve their financial efficiency.

Keywords


DEA, DMUs, Financial, Relative efficiency, International transportation companies


DOI
10.12783/dtcse/aicae2019/31516

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