Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach
This study examines the relative efficiency of 31 plantation companies in Malaysia based on data for the first three cumulated 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 t...
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| Format: | Article |
| Language: | English |
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South East Asia Journal of Business Economics and Law
2015
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| Online Access: | http://irep.iium.edu.my/43061/ http://irep.iium.edu.my/43061/1/KLIBEL_-_South_East_Asia_Journal_of_Contemporary_Business_-___Published.pdf |
| _version_ | 1848782378246340608 |
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| author | Abdul Wahab, Abdul Hamid Abdul Razak, Dzuljastri |
| author_facet | Abdul Wahab, Abdul Hamid Abdul Razak, Dzuljastri |
| author_sort | Abdul Wahab, Abdul Hamid |
| building | IIUM Repository |
| collection | Online Access |
| description | This study examines the relative efficiency of 31 plantation companies in Malaysia based on data for the first three cumulated 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 |
| first_indexed | 2025-11-14T16:04:30Z |
| format | Article |
| id | iium-43061 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T16:04:30Z |
| publishDate | 2015 |
| publisher | South East Asia Journal of Business Economics and Law |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-430612017-11-17T06:34:12Z http://irep.iium.edu.my/43061/ Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach Abdul Wahab, Abdul Hamid Abdul Razak, Dzuljastri HG Finance This study examines the relative efficiency of 31 plantation companies in Malaysia based on data for the first three cumulated 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 South East Asia Journal of Business Economics and Law 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/43061/1/KLIBEL_-_South_East_Asia_Journal_of_Contemporary_Business_-___Published.pdf Abdul Wahab, Abdul Hamid and Abdul Razak, Dzuljastri (2015) Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach. South East Asia Journal of Contemporary Business, Economics and Law, 6 (1). pp. 25-33. ISSN 2289-1560 http://seajbel.com/ |
| spellingShingle | HG Finance Abdul Wahab, Abdul Hamid Abdul Razak, Dzuljastri Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach |
| title | Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach |
| title_full | Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach |
| title_fullStr | Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach |
| title_full_unstemmed | Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach |
| title_short | Relative efficiency of plantation companies in Malaysia: a financial ratio-based data envelopment analysis approach |
| title_sort | relative efficiency of plantation companies in malaysia: a financial ratio-based data envelopment analysis approach |
| topic | HG Finance |
| url | http://irep.iium.edu.my/43061/ http://irep.iium.edu.my/43061/ http://irep.iium.edu.my/43061/1/KLIBEL_-_South_East_Asia_Journal_of_Contemporary_Business_-___Published.pdf |