Performance Efficiency Evaluation of the Taiwan's Shipping Industry: An Application of Data Envelopment Analysis (original) (raw)

Abstract

This paper attempts to construct an efficient evaluation for a shipping industry with financial indicators, because sometimes non-financial indicators are difficult to obtain and are doubtful or untrustworthy. So financial indicators are an important method to evaluate performance. A financial statement is audited by CPA and it is easy to gather, so we do not doubt its trustworthiness. The main

Key takeaways

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  1. Data Envelopment Analysis (DEA) effectively evaluates the efficiency of 14 Taiwanese shipping firms using financial indicators.
  2. The study identifies four firms as efficient: U-Ming, YML, WAN HAI, and Shanloong, each with an efficiency score of 1.
  3. Traditional financial ratios can yield inconsistent results compared to DEA in assessing firm performance.
  4. The research highlights limitations, such as the absence of quality indicators and foreign firms in the analysis.
  5. Correlation coefficients of 0.93 (ROE) indicate a strong link between DEA efficiency scores and firm profitability.

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