Data envelopment analysis (DEA) and financial ratios : a pro-stakeholders’ view of performance measurement for sustainable value creation of the wind energy

Purpose: The purpose of the paper is to explore business performance in a rather sensitive sector that equally combines economic, environmental and social dimensions. The paper investigates the efficiency of wind farm companies, in a framework of pursuing more diverse stakeholders’ interests Design/Methodology/Approach: Ratios and DEA approaches are combined to measure economic efficiency among the DMUs of a sample of wind farms, using data from their financial statements. Findings: Productivity and effectiveness comprise the performance measured by the economic efficiency. We show that by choosing inputs and outputs that are closely related in forming an appropriate financial ratio, it helps to design and explain more fully the impact of a policy intervention aiming at improving economic efficiency. DEA supplements ratios to design, implement and assess a strategy of benchmarking towards bolstering performance, that favors a wider range of stakeholders. Originality/Value: The study provides an in-depth insight into using Data Envelopment Analysis and financial ratios to study economic efficiency. The approach combines economic, social and environmental dimensions (indirectly) of performance, and the composite ratio Return on Total Assets (ROTA). The analysis caters the specific features of the sector renewable energy and their diverse stakeholders.peer-reviewe

Using Data Envelopment Analysis to Evaluate Environmentally Conscious Tourism Management

This paper discusses a methodology to assess the performances of tourism management of local governments when economic and environmental aspects are considered as equally relevant. In particular, the focus is on the comparison and efficiency assessment of Italian municipalities located on the costal areas. In order to assess the efficiency status of the considered management units, Data Envelopment Analysis (DEA), a methodology for evaluating the relative efficiency of decision making units, is applied. The efficiency index measure used in DEA analysis accounts for both environmental and economic features correlated to the tourism industry. Further, potential managerial improvements for those areas resulting far from the efficiency frontier can be investigated.Data envelopment analysis, Sustainable tourism

Does Sustainable Banking Disclosure Affect Bank Efficiency? Evidence from Indonesia

Research aims: In Indonesia, there are regulatory developments that require companies to implement a sustainable manner in business activities. Based on Financial Service Authority Regulation No. 51/2017 regarding sustainable finance, Bank BUKU 3 and 4 are the first parties required to run and publish a sustainability report. Therefore, it is essential to evaluate the performance of a bank implementing sustainable banking. This study aims to examine sustainable banking disclosure on bank efficiency in Indonesia.Design/Methodology/Approach: The researchers used 70 observations of banks listed on the Indonesian stock exchange from 2015 to 2019. The method for testing bank efficiency employed Data Envelopment Analysis (DEA). In the second stage of the analysis, the researchers utilized a panel data regression method.Research findings: First, the results showed that commercial banks BUKU 3, 4 in Indonesia were still inefficient. Second, the article also found that sustainable banking disclosure had a positive effect on bank efficiency.Theoretical contribution/Originality: This study's results constitute empirical evidence related to stakeholder theory and provide empirical evidence regarding the effect of sustainable banking on bank efficiency.Practitioner/Policy implication: This research contributes to bank management to implement sustainable banking because it can increase bank efficiency

HSE management system and efficiency evaluation of construction projects

The strategy of Belt and Road Initiative actively advocates the establishment of economic partnerships with countries along the belt and road, and makes infrastructure construction a field for preferential development. It provides good development opportunities for domestic and foreign engineering contracting enterprises. The "Strategic Implementation Guidance Document" mentions that infrastructure construction and operation should be green and efficient. However, most state owned engineering contracting enterprises do not attach importance to HSE management, which obviously affects the engineering efficiency and hinders the sustainable development of enterprises. However, China's engineering contracting enterprises pay less attention to HSE management, which obviously affects project efficiency and hinders the sustainable develop ment of enterprises. This study takes a typical large project contracting enterprise (Enterprise A) in China as the research object, adopts the SWOT analysis method, analyzes the weakness of project management at the organization level, and consummates th e organization level project HSE management system of the enterprise at the organization layer and the project layer. Through the enterprise interview, questionnaire design and investigation, this study puts forward the suitable indicators and methods of H SE management performance evaluation, and verifies the effectiveness of the methods through the empirical analysis of eight projects. Then, this study proposes incorporating the project HSE management performance into the comprehensive evaluation methods o f project efficiency. The empirical analysis shows that the HSE management system proposed in this study at the organization layer and at the project layer can improve the HSE management performance of the project. Project HSE management performance has a positive impact on project efficiency, that is, the more enterprises attach importance to project HSE management, the higher the degree of completion of project objectives. The above research results are helpful to improve project management system at the organizational level and enhance the competitiveness of project contracting enterprises.A estratégia da "Belt and Road Initiative" defende ativamente o estabelecimento de parcerias económicas com os países ao longo de uma determinada faixa e faz da construção de infraestruturas um campo preferencial para desenvolvimento. Este campo fornece boas oportunidades de desenvolvimento para as empresas de engenharia nacionais e estrangeiras. O "Documento de Orientação de Implementação Estratégica" menciona que a construção e operação de infraestruturas deve ser eficiente e sustentável. No entanto, a grande maioria das empresas públicas contratadas não atribuem a devida importância aos sistemas de gestão de saúde e segurança (HSE) o que, obviamente, afecta a eficiência da engenharia e dificulta o desenvolvimento sustentável das empresas. As empresas privadas chinesas de engenharia ignoram a gestão HSE o que, obviamente, afecta, também, a eficiência dos projetos de sustentabilidade das empresas. Neste trabalho foi considerada uma grande empresa Chinesa de contratação (Empresa A) na China como referência de pesquisa, que adota a análise swot, analisa as fraquezas na gestão de projetos ao nível da organização e consuma a gestão de projetos em HSE ao nível da organização e do projeto em si. Através de entrevistas, questionários e investigação, este projeto apresenta os indicadores e métodos a dequados de avaliação de desempenho e verifica a efetividade dos métodos através da análise empírica de oito projetos. Em suma, este projeto propõe incorporar métodos de avaliação da eficiência através dos indicadores de gestão do HSE. A análise empírica demonstrou que o sistema proposto de gestão HSE, ao nível da organização e de projeto, pode aumentar efetivamente a gestão de performance do HSE em projeto. A gestão da performance do projeto HSE teve um impacto positivo na eficiência do projeto, ou seja, quanto mais as empresas atribuirem importância à gestão de projetos HSE maior será o nível de conclusão dos objetivos sustentáveis do projeto. Os resultados deste projeto são úteis para melhorar o sistema de gestão de projetos ao nível organizacional e aum entar a competitividade das empresas na contratação de projectos

The competitiveness and efficiency of the Vietnamese banking sector in the face of financial liberalisation

This thesis provides empirical evidence of the impact of financial liberalisation on the competitiveness and efficiency of the Vietnamese banking sector by applying a combination of non-parametric frontier estimation methods, stochastic frontier methods and Tobit panel data regression techniques. There have been few studies in Vietnam linking financial liberalisation to banking sector competitiveness and efficiency. In the thesis, these parametric and non-parametric methods are applied in a pilot study to measure the allocative efficiency at branch level of the Vietnam Bank for Agricultural and Rural Development (VBARD) – the largest bank in Vietnam in terms of total assets. The technical efficiency of the Vietnamese banking sector at bank level is then estimated using the same methods. The empirical investigation of the thesis is based on the use of branch-level data and bank-level data for a sample of more than 50 branches of VBARD across the country over the period 2004–2008 and around 40 banks over the period 2002–2012. Using data envelopment analysis (DEA) to measure allocative efficiency at branch level and technical efficiency at bank level and using stochastic frontier analysis (SFA) to estimate cost and profit efficiency at branch level, the thesis suggests that the contributions of financial liberalisation to bank efficiency are generally mixed, depending on the measures of bank efficiency used and the sub-periods taken into account. The thesis presents weak empirical evidence of the positive impacts of financial liberalisation on efficiency improvements of the Vietnamese banking sector at both branch and bank level. Banking efficiency is inconsistently increased over the period of financial liberalisation as the financial market is more liberated and the size of the banking sector substantially increased. Hence, industry rationalisation through reconsolidating and restructuring mergers and acquisitions (M&A) is required. The thesis suggests that both financial liberalisation and greater competition contribute to lower profit efficiency and higher costs for banks. The thesis indicates that the Vietnamese banking system is dominated by large banks and that the state-owned commercial banks (SOCBs) are more efficient than the joint stock commercial banks (JSCBs), mainly because of their competitive advantage in terms of size. Furthermore, Vietnamese banking efficiency at both branch and bank levels is significantly improved by high levels of capitalisation, larger size and a better labour force, while it is hampered by low loan quality. The findings also suggest that the northern banks in Vietnam are more efficient than the southern banks. The empirical evidence of the thesis is also focused on investigating the impact of financial liberalisation on bank technical efficiency and productivity growth, making use of a two-step approach consisting of DEA and Tobit panel data regressions. The analysis conducted across the different location groups (north and south) suggests that the impact on the technical efficiency of banks is more pronounced in the northern areas than in the southern areas. Furthermore, the Tobit estimation takes into account bank-specific differences in terms of total assets, the equity–total assets ratio, the labour–capital ratio and the provision–capital ratio; the evidence suggests that these influences are also mostly significant under financial liberalisation. As a result, the thesis suggests that financial liberalisation reinforces an independent impact on the technical efficiency of banks

Environmental performance evaluation of Chinese industrial systems:a network SBM approach

In recent years, environmental problems caused by industries in China have drawn increasing attention to both academics and policy makers. This paper assesses the environmental efficiency of Chinese regional industrial systems to come up with some recommendations to policy makers. First, we divided each Chinese regional industrial system into a production process and a pollutant treatment process. Then, we built a scientific input–intermediate–output index system by introducing a new network slacks-based model (NSBM) model. This study is the first to combine NSBM with DEA window analysis to give a dynamic evaluation of the environmental efficiency. This enables us to assess the environmental efficiency of Chinese regional industrial systems considering their internal structure as well as China’s policies concerning resource utilization and environmental protection. Hence, the overall efficiency of each regional industrial system is decomposed into production efficiency and pollutant treatment efficiency. Our empirical results suggest: (1) 66.7% of Chinese regional industrial systems are overall inefficient. 63.3 and of 66.7% Chinese regional industrial systems are inefficient in the production process and the pollutant treatment process, respectively. (2) The efficiency scores for the overall system and both processes are all larger in the eastern area of China than those of the central and western areas. (3) Correlation analysis indicates that SO2 generation intensity (SGI), solid waste generation intensity, COD discharge intensity, and SO2 discharge intensity have significantly negative impacts on the overall efficiency. (4) The overall inefficiency is mainly due to inefficiency of the pollutant treatment process for the majority of regional industrial systems. (5) In general, the overall efficiency was trending up from 2004 to 2010, indicating that the substantial efforts China has devoted to protecting the environment have yielded benefits

Measuring the Technical Efficiency of the Banking Sector (Economic Growth in Ghana)

This study assesses the technical performance and overall productivity change factor after consolidation and the subsequent system of banking reforms to stabilize the sector before the effects of the financial crisis. The study uses both non-parametric data wrapping (DOS) and the Stochastic Boundaries (SFA) parametric approach using the Malmquist Productivity Index and the Fault Component Production Function to determine whether there has been a significant change in efficiency in a sample of 12 banks representing about 80 percent of Ghana's total bank assets. The theoretical approach of the remedy is used when selecting input and output variables. The input variables to be included are total deposits, total capital and operating costs, including staff costs, and production variables are loans and operating income that are responsible for weighted returns, such as interest income or cost-based revenues. The results suggest that the average technical efficiency within the SFA and the general change in production, per the factor of productivity at the DEA will decrease as bank production shifts to interest-only income or cost-based revenues. Although the size is different, both the SFA and DEA are managing in a similar direction for technical efficiency and overall factoring production. The impact of the study suggests that policymakers should be concerned about the bank's ability to arbitrarily generate cost-based revenues, which is a high long-term cost to the banking system. Keywords: Data Envelopment Analysis, Malmquist productivity index, technical efficienc

Reconciling energy and carbon emission performance for sustainability

Enerji ve çevresel verimlilik kavramları üretim süreci esnasında çok az ya da hiç kirlilik açığa çıkmamasını sağlayarak verimliliği yeniden tanımlar ve sürdürülebilir bir geleceğe erişimi sağlar. Konuyla ilgili literatür ülkelerin çevresel verimlilik ve performans ölçümlerinin sağlanması konusunda yeterli değildir. Bu çalışma, elektrik enerjisi üretiminde enerji ve CO2 salımı performansını üretim verimliliği açısından modeller. Bu çalışmada radyal olmayan mesafe fonksiyonu kullanılmış; enerji, çevre ve enerji-çevre performans indisleri 112 ülke için ve 1988-2011 periyotlarını kapsayacak şekilde oluşturulmuştur. Model IEA 2013 datasını kullanarak GAMS 23.5 programında çözülmüştür. Ülkeler, ilk etapta birleşik ısı ve güç üretim (CHP) teknolojisini kullanımlarına göre gruplanmış ve en iyi üretim sınır eğrisi oluşturulmuştur. İkinci grup ise G20 ülkelerinden oluşmakta olup, bu gruplama dünyadaki 20 majör ülkenin enerji, çevre ve enerji-çevre performanslarının karşılaştırılmasını sağlamaktadır. Son grup ise Türkiye'nin de içinde bulunduğu Birleşmiş Milletler İklim Değişikliği Çerçeve Sözleşmesi (UNFCCC) Ek I ülkelerinden oluşmaktadır. Data setteki en son yıl olan 2011 yılı için tüm performans indislerinde en iyi performans gösteren ülkeler şunlardır: CHP teknolojisini kullanan ülkeler arasında İsviçre ve İsveç; CHP teknolojisini kullanmayan ülkeler arasında Brezilya; G20 ülkeleri arasında Brezilya ve İngiltere; Ek I ülkeleri arasında ise Beyaz Rusya ve Slovak Cumhuriyeti. Literatürle uyumlu olarak Türkiye, kirliliğe sebep olan ana ülkelere göre daha iyi enerji ve çevresel performans sergilemiş olup, Ek I örneklem ülkeleri arasında ise medyanda yer almaktadır. Anahtar Kelimeler: Enerji Verimliliği, Çevresel Verimlilik, CO2 Salım Performansı, Elektrik Üretimi, Yönsel Mesafe Fonksiyonu, Veri Zarflama AnaliziThe concepts of energy and environmental efficiency, with creating less or no pollution in production processes, help to redefine efficiency in general and serve to attain a sustainable future. The relevant literature is underprovided in analyzing environmental efficiency and thus performance measures for countries over time. This study models energy and CO2 emission performance in electricity generation from the production efficiency point of view. It uses a non-radial directional distance function and constructs energy, environmental and energy-environmental performance indices for 112 countries over the period of 1988-2011. The models are run in GAMS 23.5 with IEA data 2013. The countries are grouped firstly with respect to their use of combined heat and power (CHP) technology to construct best practice frontier. The second group is G20 countries, which allows investigation of the tradeoffs amongst energy and environmental performances of top 20 countries in the world. The last group is UNFCCC Annex I countries, consisting of Turkey. The study shows that the majority of the countries still have room for improvement for energy and the environment. For the most current year in the dataset, 2011, for all the indices, the following countries are the best performers; Switzerland and Sweden in the group of countries with CHP technology, Brazil for the non-CHP countries, Brazil and United Kingdom among G20 countries, and Belarus and Slovak Republic in Annex I. Consistent with the literature, Turkey has better energy and environmental performance compared to the major polluters as it performs around the medians of sample countries in UNFCCC Annex I. Keywords: Energy efficiency, Environmental efficiency, CO2 emission performance, Electricity Generation, Directional distance function, Data envelopment analysis