Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach

This study examines the relative efficiency of 31 plantation companies in Malaysia based on data for the first three cumulated quarters of 2012 (January - September). The study applies an adopted version of Data Envelopment Analysis (DEA). DEA is a tool used to weigh the inputs/outputs and measure t...

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Main Authors:	Abdul Wahab, Abdul Hamid, Abdul Razak, Dzuljastri
Format:	Article
Language:	English
Published:	South East Asia Journal of Business Economics and Law 2015
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/43061/ http://irep.iium.edu.my/43061/ http://irep.iium.edu.my/43061/1/KLIBEL_-_South_East_Asia_Journal_of_Contemporary_Business_-___Published.pdf

id	iium-43061
recordtype	eprints
spelling	iium-430612017-11-17T06:34:12Z http://irep.iium.edu.my/43061/ Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach Abdul Wahab, Abdul Hamid Abdul Razak, Dzuljastri HG Finance This study examines the relative efficiency of 31 plantation companies in Malaysia based on data for the first three cumulated quarters of 2012 (January - September). The study applies an adopted version of Data Envelopment Analysis (DEA). DEA is a tool used to weigh the inputs/outputs and measure the relative efficiency of decision-making units. This research adopts an output-oriented form of DEA based on financial ratios without the utilization of inputs. The innovative adopted DEA model provides a comprehensive decision on a company’s efficiency by taking into account various financial ratios all together and combining them into a single measure of efficiency. The results show that out of the 31 plantation companies in Malaysia, only five (16.13%) proved to be efficient. Also, it is found that the higher a company’s financial ratio in relation to the equivalent ratios of other companies, the higher the efficiency score of that company. Keywords: Efficiency, Data Envelopment Analysis, Malaysia, Plantation Companies South East Asia Journal of Business Economics and Law 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/43061/1/KLIBEL_-_South_East_Asia_Journal_of_Contemporary_Business_-___Published.pdf Abdul Wahab, Abdul Hamid and Abdul Razak, Dzuljastri (2015) Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach. South East Asia Journal of Contemporary Business, Economics and Law, 6 (1). pp. 25-33. ISSN 2289-1560 http://seajbel.com/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG Finance
spellingShingle	HG Finance Abdul Wahab, Abdul Hamid Abdul Razak, Dzuljastri Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach
description	This study examines the relative efficiency of 31 plantation companies in Malaysia based on data for the first three cumulated quarters of 2012 (January - September). The study applies an adopted version of Data Envelopment Analysis (DEA). DEA is a tool used to weigh the inputs/outputs and measure the relative efficiency of decision-making units. This research adopts an output-oriented form of DEA based on financial ratios without the utilization of inputs. The innovative adopted DEA model provides a comprehensive decision on a company’s efficiency by taking into account various financial ratios all together and combining them into a single measure of efficiency. The results show that out of the 31 plantation companies in Malaysia, only five (16.13%) proved to be efficient. Also, it is found that the higher a company’s financial ratio in relation to the equivalent ratios of other companies, the higher the efficiency score of that company. Keywords: Efficiency, Data Envelopment Analysis, Malaysia, Plantation Companies
format	Article
author	Abdul Wahab, Abdul Hamid Abdul Razak, Dzuljastri
author_facet	Abdul Wahab, Abdul Hamid Abdul Razak, Dzuljastri
author_sort	Abdul Wahab, Abdul Hamid
title	Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach
title_short	Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach
title_full	Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach
title_fullStr	Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach
title_full_unstemmed	Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach
title_sort	relative efficiency of plantation companies in malaysia: a financial ratio-based data envelopment analysis approach
publisher	South East Asia Journal of Business Economics and Law
publishDate	2015
url	http://irep.iium.edu.my/43061/ http://irep.iium.edu.my/43061/ http://irep.iium.edu.my/43061/1/KLIBEL_-_South_East_Asia_Journal_of_Contemporary_Business_-___Published.pdf
first_indexed	2023-09-18T21:01:20Z
last_indexed	2023-09-18T21:01:20Z
_version_	1777410643305955328

Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach

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