Finanacial efficiency analysis: A DEA approach.

摘要

This report replicates the application of a financial DEA model and a comparison of its results with financial ratio analysis.;Using the same methods as Yeh (1996), this study covers the US airline industry from 1981 to 1989. Income statement data are used as inputs and outputs to the DEA model. The DEA efficiency scores are then compared with the results of a principle component analysis of standard financial ratios.;The empirical results generated in this study differ from those reported by Yeh. The DEA efficiency scores are consistent only with respect to profitability ratios. Industry differences may contribute to the divergence as well as the economic climate in the United States during the 1980's as opposed to the regulated stability of Yeh's subject industry, the Taiwan banking industry.;A preliminary examination of the relationship between DEA efficiency scores and stock market pricing is also undertaken. Further study in this area, performing similar work on a larger data base, constructing a different DEA model, perhaps incorporating a risk factor to capture stock price variation is indicated.