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Enhancing the Efficiency of the Benchmarking Learning Map Model: The Integrated Fra Perspective

Author

Listed:
  • Lin, Wen Cheng

    (Business and Administration, National Taipei College of Business, Taiwan, R.O.C)

  • Yahalom, Shmuel

    (State University of New York, Maritime College, USA.)

Abstract

Financial Ratio Analysis (FRA) has been used for the evaluation of firm’s operating performance. However, these individual performance values calculated from FRA have their own different managerial deficiencies. The original Data Envelopment Analysis (DEA) may fill this gap and may be used to calculate efficiency values. This study integrates the DEA with Slacks-Based Measure Model (SBM) to enhance the evaluation efficiency of firms’ operating performance. The analysis used financial data of 46 textile firms (that trade in the Taiwan stock market) before the 2007 financial crisis. From this total, 8 textile firms were categorized as an efficient operating group and the other 38 firms were categorized inefficient. This study employed the slackbased measure and the analysis model as a benchmark management tool to offer some improvements for the inefficient firms.

Suggested Citation

  • Lin, Wen Cheng & Yahalom, Shmuel, 2012. "Enhancing the Efficiency of the Benchmarking Learning Map Model: The Integrated Fra Perspective," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 44-57, September.
    • Handle: RePEc:rjr:romjef:v::y:2012:i:3:p:44-57
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    References listed on IDEAS

    as
    1. Golany, B & Roll, Y, 1989. "An application procedure for DEA," Omega, Elsevier, vol. 17(3), pages 237-250.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    More about this item

    Keywords

    financial ratio; performance evaluation; Slacks-Based Measure Model (SBM); benchmarking management; BCG matrix;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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