Overlooked effect of negative data on efficiency analysis
Financial data may contain nonpositive values, which can be addressed using logarithm transformation or the addition of constant. However, production scale is important when employing data envelopment analysis (DEA) to assess the efficiency of input-output transformation. Traditional techniques of h...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Springer Nature
2024
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| Online Access: | http://umpir.ump.edu.my/id/eprint/43398/ http://umpir.ump.edu.my/id/eprint/43398/1/Lu%20et%20al.%20%282024%29_OPSEARCH.pdf |
| _version_ | 1848826867205799936 |
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| author | Lu, Wen-Min Kweh, Qian Long Ting, Irene Wei Kiong |
| author_facet | Lu, Wen-Min Kweh, Qian Long Ting, Irene Wei Kiong |
| author_sort | Lu, Wen-Min |
| building | UMP Institutional Repository |
| collection | Online Access |
| description | Financial data may contain nonpositive values, which can be addressed using logarithm transformation or the addition of constant. However, production scale is important when employing data envelopment analysis (DEA) to assess the efficiency of input-output transformation. Traditional techniques of handling negative data values in DEA, such as adding an arbitrary constant or substituting a small positive
value, fail to account for the effect of production scale on efficiency and can produce misleading findings. This study thus proposes a novel method for dealing with negative output values in DEA by revising them based on production scale.
Overall, this study enables better informed decision-making by improving the accuracy of efficiency assessments in complex data settings containing both positive and negative values. |
| first_indexed | 2025-11-15T03:51:38Z |
| format | Article |
| id | ump-43398 |
| institution | Universiti Malaysia Pahang |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T03:51:38Z |
| publishDate | 2024 |
| publisher | Springer Nature |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | ump-433982025-01-03T03:33:45Z http://umpir.ump.edu.my/id/eprint/43398/ Overlooked effect of negative data on efficiency analysis Lu, Wen-Min Kweh, Qian Long Ting, Irene Wei Kiong HG Finance Financial data may contain nonpositive values, which can be addressed using logarithm transformation or the addition of constant. However, production scale is important when employing data envelopment analysis (DEA) to assess the efficiency of input-output transformation. Traditional techniques of handling negative data values in DEA, such as adding an arbitrary constant or substituting a small positive value, fail to account for the effect of production scale on efficiency and can produce misleading findings. This study thus proposes a novel method for dealing with negative output values in DEA by revising them based on production scale. Overall, this study enables better informed decision-making by improving the accuracy of efficiency assessments in complex data settings containing both positive and negative values. Springer Nature 2024-06-05 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/43398/1/Lu%20et%20al.%20%282024%29_OPSEARCH.pdf Lu, Wen-Min and Kweh, Qian Long and Ting, Irene Wei Kiong (2024) Overlooked effect of negative data on efficiency analysis. OPSEARCH. pp. 1-10. ISSN 0975-0320. (In Press / Online First) (In Press / Online First) https://doi.org/10.1007/s12597-024-00797-7 https://doi.org/10.1007/s12597-024-00797-7 |
| spellingShingle | HG Finance Lu, Wen-Min Kweh, Qian Long Ting, Irene Wei Kiong Overlooked effect of negative data on efficiency analysis |
| title | Overlooked effect of negative data on efficiency analysis |
| title_full | Overlooked effect of negative data on efficiency analysis |
| title_fullStr | Overlooked effect of negative data on efficiency analysis |
| title_full_unstemmed | Overlooked effect of negative data on efficiency analysis |
| title_short | Overlooked effect of negative data on efficiency analysis |
| title_sort | overlooked effect of negative data on efficiency analysis |
| topic | HG Finance |
| url | http://umpir.ump.edu.my/id/eprint/43398/ http://umpir.ump.edu.my/id/eprint/43398/ http://umpir.ump.edu.my/id/eprint/43398/ http://umpir.ump.edu.my/id/eprint/43398/1/Lu%20et%20al.%20%282024%29_OPSEARCH.pdf |