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

Abdul Wahab, Abdul Hamid and Abdul Razak, Dzuljastri (2015) Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach. In: Kuala Lumpur International Business, Economics and Law Conference, 18th-19th April 2015, Hotel Putra, Kuala Lumpur.

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Abstract

This study examines the relative efficiency of 31 plantation companies in Malaysia based on data for the first three cummulated 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

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 4433/43060 ISBN 978-967-11350-4-4 (Pls use 43061 for MyRA)
Uncontrolled Keywords: Efficiency, Data Envelopment Analysis, Malaysia, Plantation Companies
Subjects: H Social Sciences > HF Commerce > HF5001 Business. Business Administration
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User: Dr Dzuljastri Abdul Razak
Date Deposited: 08 Jun 2015 10:52
Last Modified: 01 Oct 2015 15:47
URI: http://irep.iium.edu.my/id/eprint/43060

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