Comparative analysis of economic efficiency of Polish and German listed companies

Abstract

The main subject of theoretical-empirical study presented in this paper is economic efficiency of companies listed on the Polish and German capital market. The discussed research problem was investigated in the form of a comparative analysis and realized in two parts. The discussion presented in the first part depicts mainly theoretical reflections on the essence and assessment measures of companies’ economic efficiency. The second part presents the results of a comparative empirical research on economic efficiency of the companies listed on the Warsaw Stock Exchange and included in the WIG30 index as well as the companies listed on the Frankfurt Stock Exchange, which belong to the DAX index. The research period comprises years between 2004-2013. A comparative analysis of economic efficiency of the companies was conducted using a traditional ratio analysis and the nonparametric DEA method. The results of the empirical research confirm that German companies achieved significantly higher values of basic economic categories in the analysed decade, financial results in particular; however, their generated profits did not reflect in higher values of profitability ratios. Polish companies performed much better as they also showed higher efficiency from the DEA’s point of view.

A novel DEA model for hospital performance evaluation based on the measurement of efficiency, effectiveness, and productivity

“…There are numerous studies of DEA application in evaluating effectiveness, such as industry (Docekalova & Bockova, 2013;Nazarko & Chodakowska, 2015) companies (Sajnóg, 2015;Grmanová & Pukala, 2018), countries (Chodakowska & Nazarko, 2017a), railway industry (Lan & Lin, 2003;Yu & Lin, 2008), urban transit systems (Karlaftis, 2004), hotel-chain services (Keh et al, 2005), healthcare work (Stefko et al, 2016), Spanish football teams (García-Sánchez, 2007), public higher education institutions (Nazarko & Šaparauskas, 2014), public sector banks (Kumar & Gulati, 2010), couriers and messengers (Chodakowska & Nazarko, 2017b), airlines (Tavassoli et al, 2014), and supply chains (Azadi et al, 2015).…”

Dynamic model of the efficiency of small enterprises

“…The literature studies confirm the recognition of its crucial role in creating stability and growth of the economy (Wijewardena et al 2008), (Komkov et al 2011), particularly in countries where the share of small enterprises in the total GDP is relatively high (Kotey and Meredith 1997). Therefore, the problem of the efficiency of enterprises in the SME sector becomes essential, which may be related to the factors determining the activity in a single country (Sajnóg 2015).…”

Do environmental and economic performance go hand in hand? An industrial analysis of European Union companies with the non‐parametric data envelopment analysis method

“…In general, an entity's economic efficiency is viewed as either efficiency (i.e., maximizing the outputs) or saving (minimizing the inputs), which is reflected in three definitions: the difference between the outputs and the inputs, the ratio of the effects to the incurred inputs, and the quotient of the difference between the outputs and inputs to the incurred outlays. Efficiency is measured using various methods (Sajnóg, 2015): indicator (constructing relationships between various volumes); parametric (determining technical dependence between outlays and production, for example, Stochastic Frontier Approach [SFA], Thick Frontier Approach [TFA], or Distribution Free Approach [DFA]); non‐parametric (using a linear programming procedure, for example, DEA or Free Disposal Hull [FDH]). We take effectiveness as the quotient of effects to incurred expenditures and measure it using the non‐parametric DEA method.…”