Comparative study on DuPont analysis and DEA models for measuring stock performance using financial ratio

Arsad, Roslah; Shaari, Siti Nabilah Mohd; Isa, Zaidi

doi:10.1063/1.5012195

Cited by 3 publications

(7 citation statements)

References 12 publications

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“…DEA as a nonparametric method is deployed for assessing the hospitals' efficiency due to its distinguishing features. First, as argued by Arsad et al (2011), Tuskan and Stojanovic (2016), Mousa (2015), Yu et al (2014), Zhu (2014), Shahwan and Hassan (2013) and Saeed et al (2013), DEA as a nonparametric approach is highly flexible in capturing the relationship between specific inputs and outputs, since it does not require any prior assumptions regarding the basic functional form of the selected variables or their residuals. Moreover, DEA does not require any prior information about the weighting that should be given to the selected input and output factors.…”

Section: Methodsmentioning

confidence: 99%

“…Their empirical findings confirm the superiority of DEA to regression analysis for the accuracy of its estimates and for capturing the relationship. Simultaneously, Arsad et al (2011); Tuskan and Stojanovic (2016); Mousa (2015); Yu et al (2014); and Saeed et al (2013) confirm the beneficial role of DEA in benchmarking DMUs for identifying the units that show best practice, thus ensuring continued improvement.…”

Section: Introductionmentioning

confidence: 93%

“…At the same time, assessing hospital efficiency is one of the key drivers in developing the best strategies and policies to ensure continuous improvement (e.g. Kim and Kim, 2019; Kohl et al , 2019; Plasschaert, 2018; Sahin and Ilgun, 2019; Arsad et al , 2011; Fiallos et al , 2017; Jia and Yuan, 2017; Valdmanis et al , 2017; Sun et al , 2016; Tuskan and Stojanovic, 2016; Nakata et al , 2016; Wang et al , 2016; Fixler et al , 2014; Mousa, 2015; Chatfield, 2014; De Souza et al , 2014; Yu et al , 2014; Saeed et al , 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

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Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals

Habib

Shahwan

2020

BIJ

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PurposeThe efficient use of organizational resources is integral to the existence of prime firms. This study, using Malmquist data envelopment analysis (DEA), aims to assess in the level of operational and financial efficiency and its determinants for ensuring and sustaining excellent performance in 33 Egyptian private hospitals.Design/methodology/approachThis study adopted a Malmquist DEA approach to assess the changes in operational and financial efficiency in Egyptian hospitals. Tobit regression was also used to identify the significant variables affecting their efficiency. In addition, a sensitivity analysis is carried out for model validations.FindingsOut of 33 hospitals, 17 were found inefficient due to the decline in their technical efficiency. Moreover, the total value of the software programs and operational expenses and the total number of employees are common factors affecting both operational and financial efficiency. In addition, the number of physicians significantly affects the hospital's financial efficiency.Practical implicationsThe study sheds light on the value of using DEA to assess efficiency. DEA in the context of emerging economy such as Egypt's can be a useful tool for decision-makers and practitioners in identifying and addressing performance weaknesses and thus supports continuous improvement in performance.Originality/valueSeveral studies have adopted the DEA approach to assess the overall efficiency of hospitals in Europe and the United States. However, in the MENA region, these studies are uncommon. This study is thought to be one of the earliest attempts to assess hospitals' efficiency in Egypt.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 93%

Section: Literature Reviewmentioning

confidence: 99%

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Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals

Habib

Shahwan

2020

BIJ

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“…The original model IN05 (1) considers five indicators: Total assets/Liabilities (TA/L), EBIT/ Interest expense (EBIT/IE), EBIT/Total assets (EBIT/TA), Total revenues/Total assets (TR/TA) and the last one is Current total assets/Short-term liabilities (CTA/SL). Four categories of financial indicators reflecting financial health and performance such as liquidity, leverage, profitability and efficiency (Arsad et al, 2017;Hajek and Henriques, 2017;Sofrankova et al, 2017) are included in capital maintenance evolution model.…”

Section: Resultsmentioning

confidence: 99%

“…A precondition for the good time evaluation of the situational development of enterprises is their comparability of financial indicators, which has to interpreted correctly for proper financial decision making. (Arsad et al, 2017) The financial situation also significantly affects other functional areas of strategic management, whose growth and development require financially demanding investments. This implies that the financial strategy penetrates the whole enterprise and has a crosssectional character.…”

Section: Introductionmentioning

confidence: 99%

Capital Maintenance Evolution using Outputs from Accounting System

Freitas

Espinosa

Correia

2020

SAEB

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Decision making based on information provided by an enterprise accounting information system, is essential for sustainable development and enterprises growth. Besides widely used prediction models for an assessment of the financial distress, there is also a useful indicator of a capital maintenance evolution, that provides a deeper view to the enterprise growth or decline compared to traditional performance measures. The aim of the contribution is to develop a model for assessment of a capital maintenance evolution using available accounting outputs. Our constructed model and coefficient for a capital maintenance evolution CMEOPNN has been developed using the multi-layer (triple) artificial neural network with a feedforward signal transmission by a backpropagation method and an activation function is a sigmoid function. For construction our model we used 663 Slovak enterprises sample out of 5 most frequented industry sectors with a unified structure of the provided information in the financial statements for 2014-2017.

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Exploring Industry Benchmarks for Continuous Improvement and Investment Decision-Making

Wang

Huang

Lee

2021

Int. J. Info. Tech. Dec. Mak.

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Measuring company efficiency is an important issue for both managers and investors. Efficiency measurement is always important because organizations are constantly striving to increase internal productivity. However, investors are more concerned about sustainability than many executives believe. Almost 75% of investment community respondents strongly believed that improvements in operational efficiency were often accompanied by progress in terms of sustainability. This study examined companies listed on the Taiwan 50 and Taiwan Mid-Cap 100 Indexes and measured and ranked their operational efficiencies, identifying representatives with high investment potential among these highly capitalized blue chip stocks from various industries. The results will provide managers with recommendations for improving operational efficiency through competitive mapping, as well as a list of the most attractive targets for investment.

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Comparative study on DuPont analysis and DEA models for measuring stock performance using financial ratio

Cited by 3 publications

References 12 publications

Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals

Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals

Capital Maintenance Evolution using Outputs from Accounting System

Exploring Industry Benchmarks for Continuous Improvement and Investment Decision-Making

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