scholarly journals The Impact of Firm Financial Efficiency on Executive Compensation of United States Apparel Stores Industry: An Application of Panel Data Envelopment Analysis

2018 ◽  
Vol 11 (6) ◽  
pp. 165
Author(s):  
Herman Sahni ◽  
Christian Nsiah
Keyword(s):  
Data Envelopment Analysis ◽  
Executive Compensation ◽  
Pay For Performance ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Financial Efficiency ◽  
Performance Framework ◽  
The Us ◽  
Ceo Pay ◽  
The Impact

This study examines the effect of firm financial efficiency on executive compensation with an emphasis on the US apparel industry. We find that both annual efficiency levels and cumulative efficiency changes obtained from the Data Envelopment Analysis (DEA) are positively associated with CEO pay. The effect is stronger for technological changes and changes in scale efficiency. Our results seem to support the pay-for-efficiency paradigm, a stricter version of the pay-for-performance framework under the efficient contracting explanation for CEO pay.

scholarly journals UPAYA PERBAIKAN KUALITAS UNIT PELAYANAN TEKNIK DENGAN PENDEKATAN LEAN SERVICE (Studi Kasus : PT. PLN APJ Surabaya Selatan)

2018 ◽  
Vol 8 (2) ◽  
pp. 67
Author(s):  
Mairina Anggarini Francesca
Keyword(s):  
Data Envelopment Analysis ◽  
Service Quality ◽  
System Modeling ◽  
Scale Efficiency ◽  
Value Management ◽  
Data Envelopment ◽  
Network Service ◽  
Service Unit ◽  
Primary Focus ◽  
The Impact

Technique Service Unit as party who handling directly distribution disturbance, where this unit have big influence on network service quality. Found that compliance on disturbance at present indicating there is waste in network service process then at this research will be quality repair effort from technique service unit from efficiency aspect. In this research method are Data Envelopment Analysis to determining where unit would be primary focus in this research based on efficiency level, Lean Service to improving poor technique service quality, as well as Value Management and dynamic system modeling with software Vensim used for improvement doing. Result of the research indicating whenever Data Envelopment Analysis, Network Service Unit (UPJ) Dukuh Kupang stated inefficiency with Technical Efficiency around 0,73. And repair effort in waste reducing found that waste defect as main cause with seven typesdisturbance causes as Critical to Quality. From CTQ found waste cause as well as repair priority, and repair alternative based on highest RPN value from FMEA then simulated to get best alternative. From available alternative, could be proved that repair recommendation had changed Network Service Unit (UPJ) be efficient with scale efficiency value change from 0,972 to 1. The advantage of this research are problem discussed completely and detail, where repair objectives done on unit really experienced problem. Then causes of the exist problem seek the cause root then priority of repair could precisely. And effort in choosing best alternatives previous simulated with the aim could be known system behavior over the impact of repair that be conducted. Then finally enable a comparison between before systemcondition and after repair

The determinants of CEO compensation: new insights from United States

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Bouteska ◽  
Salma Mefteh-Wali
Keyword(s):  
Firm Performance ◽  
Executive Compensation ◽  
Ceo Compensation ◽  
Future Research ◽  
Ceo Power ◽  
Content Type ◽  
Managerial Power ◽  
The Us ◽  
Ceo Pay ◽  
The Impact

PurposeThe purpose of this paper is to examine the determinants of CEO compensation for sample of the US firms. It emphasizes the presence of executive compensation persistence and the importance of CEO power besides performance while setting CEO pay.Design/methodology/approachThe empirical analysis is conducted on a large sample of US firms during the period 2006–2016. It is based on the generalized method of moments (GMM) models to assess the impact of numerous factors on CEO compensation.FindingsThe main findings reveal that firm performance proxied by accounting-based proxies, as well as market-based proxies, plays a significant role in explaining variations in levels of executive compensation. Moreover, there is a significant persistence in executive compensation among the US sample firms. The authors also document that poor governance conditions (managerial power hypothesis) lead to high compensation levels offered to CEO.Research limitations/implicationsAt the end, without a doubt, the analysis has some limitations that prompt the authors to consider future research directions. One future research avenue that can help better explain the effect of firm performance on the CEO compensation is to study this issue using an international sample to determine whether country-level characteristics (e.g. creditor rights, shareholder rights and the enforcement climate) can influence this relationship. Furthermore, it can be worthwhile to deepen the analysis of CEO power and its impact on CEO compensation. It will be interesting to emphasize how the CEO power interacts with the other governance characteristics and some CEO attributes as CEO gender.Practical implicationsThe paper's findings have implications for practitioners, policymakers and regulatory authorities. First, the findings inform regulators that performance is not the only determinant of CEO pay level. This may warrant increased firm disclosure of the details of the pay structure. Second, the study offers insights to policymakers and members of boards of directors interested in enhancing the design of executive compensation and internal corporate governance, to better align managerial incentives to shareholder interests. Firms should strengthen the board independence and properly constitute the board committees (compensation, risk, nomination…).Originality/valueThis paper presents a comprehensive overview of the CEO compensation determinants. It supplements the classic pay-for-performance sensitivity predictions with insights gained from the dynamics of wage setting theory and managerial power theory. The authors develop a composite index to measure the CEO power in order to test the impact of CEO attributes on CEO pay. Additionally, it verifies whether the determinants of CEO pay depend on firm age and size.

scholarly journals Efficiency of Microfinance Institutions in India: Evidence from Malmquist Indices

2017 ◽  
Vol 1 (1) ◽  
pp. 32
Author(s):  
Duong Hoai An
Keyword(s):  
Data Envelopment Analysis ◽  
Panel Data ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Microfinance Institutions ◽  
Efficiency Change ◽  
Data Set ◽  
Non Profit ◽  
Malmquist Indices ◽  
The Impact

The current study constructs a balanced panel data set on microfinance institutions in India during 2008-2012 and employs a data envelopment analysis to examine the efficiency of the institutions. The results show a decrease of 0.3 per cent in productivity during the study period. In addition, the technical efficiency change, pure efficiency change and scale efficiency attributes to the overall inefficiency of the institutions. Also, profit institutions are more efficient than non-profit institutions. Results from Tobit regressions indicate that the impact of population and GDP on the efficiency of the institutions is significant, but that of the number of microfinance institutions is not.

scholarly journals ANALYSING AIRPORT EFFICIENCY IN EAST CHINA USING A THREE-STAGE DATA ENVELOPMENT ANALYSIS

Transport ◽  
2020 ◽  
Vol 35 (3) ◽  
pp. 255-272
Author(s):  
Zhuxuan Zeng ◽  
Wendong Yang ◽  
Shengrun Zhang ◽  
Frank Witlox
Keyword(s):  
Data Envelopment Analysis ◽  
Environmental Factors ◽  
East China ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Capita Gross Domestic Product ◽  
Per Capita ◽  
Dea Method ◽  
The Impact ◽  
Statistical Noise

This paper evaluates the Technical Efficiencies (TEs) of a group of airports in East China by applying a three-stage Data Envelopment Analysis (DEA) method. The merit of this method allows us to consider the impact of the environmental factors on measuring airport efficiencies. Three variables, i.e. per capita Gross Domestic Product (GDP), the proportion of the tertiary industry, and the number of tourists, are used to represent the environmental factors. The results show that the environmental factors have airport-specific impacts on the value of the efficiencies. Additionally, airport TE are dominated by both Pure Technical Efficiency (PTE) and Scale Efficiency (SE). Based on empirical results, airport specific strategies can be provided to enhance airport efficiency, such as taking the effects of environmental variables and the statistical noise into consideration when analysing the airport efficiency, improving airport efficiencies according to their own conditions and improving the PTE or SE according to their categorizations.

scholarly journals The Measurement of Innovation Efficiency of Chinese High-tech Industry Using Data Envelopment Analysis

2015 ◽  
Vol 65 (s2) ◽  
pp. 101-113 ◽  
Author(s):  
Ling Jiang ◽  
Yunyu Jiang ◽  
Zhijun Wu ◽  
Dongsheng Liao ◽  
Runfa Xu
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Environmental Variables ◽  
Scale Efficiency ◽  
High Tech ◽  
Data Envelopment ◽  
High Tech Industry ◽  
Economic Competitiveness ◽  
Development Level ◽  
Using Data

In the era of knowledge economy, a country’s economic competitiveness depends largely on the development level of high-tech industry. This paper evaluates the efficiency of China’s high-tech industry in 31 provinces in 2012 with data envelopment analysis. The empirical results are summarized as following. Firstly, when the effects of exogenous environmental variables are not controlled, the comprehensive technical efficiency of 31 provinces will be overestimated, the pure technical efficiency will be underestimated, and the scale efficiency value will be overestimated. Secondly, after eliminating the environmental impact, the comprehensive technical efficiency of 31 provinces with the average of 0.395 is rather low, due to the low scale efficiency.

scholarly journals Does Farm Size and Specialization Matter for Productive Efficiency? Results from Kansas

2011 ◽  
Vol 43 (4) ◽  
pp. 515-528 ◽  
Author(s):  
Amin W. Mugera ◽  
Michael R. Langemeier
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Production Technology ◽  
Returns To Scale ◽  
Productive Efficiency ◽  
Farm Size ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Sample Period ◽  
Analysis Techniques

In this article, we used bootstrap data envelopment analysis techniques to examine technical and scale efficiency scores for a balanced panel of 564 farms in Kansas for the period 1993–2007. The production technology is estimated under three different assumptions of returns to scale and the results are compared. Technical and scale efficiency is disaggregated by farm size and specialization. Our results suggest that farms are both scale and technically inefficient. On average, technical efficiency has deteriorated over the sample period. Technical efficiency varies directly by farm size and the differences are significant. Differences across farm specializations are not significant.

Efficiency evaluation of Indian oil and gas sector: data envelopment analysis

2019 ◽  
Vol 14 (2) ◽  
pp. 362-378 ◽  
Author(s):  
Vikas Vikas ◽  
Rohit Bansal
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Capital Investment ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Content Type ◽  
Indian Economy ◽  
Oil And Gas Sector

Purpose Data envelopment analysis (DEA), a non-parametric technique is used to assess the efficiency of decision-making units which are producing identical set of outputs using identical set of inputs. The purpose of this paper is to find the technical efficiency (TE), pure technical efficiency and scale efficiency (SE) levels of Indian oil and gas sector companies and to provide benchmark targets to the inefficient companies in order to achieve efficiency level. Design/methodology/approach In the present study, a group of 22 oil and gas companies which are listed on the National Stock Exchange for which the data were available for the period 2013–2017 has been considered. DEA has been performed to compare the efficiency levels of all companies. To measure efficiency, three input variables, namely, combined materials consumed and manufacturing expenses, employee benefit expenses and capital investment and two output variables – operating revenues and profit after tax (PAT) have been considered. On the basis of performance for the financial year ending 2017, benchmark targets based on DEA–CCR (Charnes, Cooper and Rhodes) model have been provided to the inefficient companies that should be focused upon by them to attain the efficiency level. The performance of the companies for the past five years has been examined to check the fluctuations in the various efficiency scores of the companies considered in the study over the years. Findings From the results obtained, it is observed that 59 percent, i.e. 13 out of 22 companies are technically efficient. By considering DEA BCC (Banker, Charnes and Cooper) model, 16 companies are observed to be pure technically efficient. In terms of SE, there are 14 such companies. The inefficient units need to improve in terms of input and output variables and for this motive, specified targets are assigned to them. Some of these companies need to upgrade significantly and the managers must take the concern earnestly. The study has also thrown light on the performance of the companies over last five years which shows Oil India Ltd, Gujarat State Petronet Ltd, Petronet LNG Ltd, IGL Ltd, Mahanagar Gas, Chennai Petroleum Corporation Ltd and BPCL Ltd as consistently efficient companies. Research limitations/implications The present study has made an attempt to evaluate the efficiency of Indian oil and gas sector. The results of the study have significant inferences for the policy makers and managers of the companies operating in the sector. The results of the study provide benchmark target level to the companies of Oil and Gas sector which can help the managers of the relatively less efficient companies to focus on the ways to improve efficiency. The improvement in efficiency of a company would not only benefit the shareholders, but also the investors and other stakeholders of the company. Originality/value In the context of Indian economy, very limited number of studies have focused to measure the efficiency of oil and gas sector in the context of Indian economy. The present study aims to provide the latest insight to the efficiency of the companies especially operating in the Indian oil and gas sector. Further, as per our knowledge, this study is distinctive in terms of analyzing the efficiency of Indian oil and gas sector for a period of five years. The longitudinal study of the sector efficiency provides a bird eye view of the average efficiency level and changes in the efficiency levels of the companies over the years.

Benchmarking the efficiencies of Indonesia’s municipal water utilities using Stackelberg data envelopment analysis

2015 ◽  
Vol 22 (4) ◽  
pp. 588-609 ◽  
Author(s):  
Andreas Wibowo ◽  
Hans Wilhelm Alfen
Keyword(s):  
Data Envelopment Analysis ◽  
The Body ◽  
Water Utilities ◽  
Data Envelopment ◽  
Two Stage ◽  
Restrictive Assumption ◽  
Content Type ◽  
Second Stage ◽  
Municipal Water ◽  
The Impact

Purpose – The purpose of this paper is to present a yardstick efficiency comparison of 269 Indonesian municipal water utilities (MWUs) and measures the impact of exogenous environmental variables on efficiency scores. Design/methodology/approach – Two-stage Stackelberg leader-follower data envelopment analysis (DEA) and artificial neural networks (ANN) were employed. Findings – Given that serviceability was treated as the leader and profitability as the follower, the first and second stage DEA scores were 55 and 32 percent (0 percent = totally inefficient, 100 percent = perfectly efficient), respectively. This indicates sizeable opportunities for improvement, with 39 percent of the total sample facing serious problems in both first- and second-stage efficiencies. When profitability instead leads serviceability, this results in more decreased efficiency. The size of the population served was the most important exogenous environmental variable affecting DEA efficiency scores in both the first and second stages. Research limitations/implications – The present study was limited by the overly restrictive assumption that all MWUs operate at a constant-return-to-scale. Practical implications – These research findings will enable better management of the MWUs in question, allowing their current level of performance to be objectively compared with that of their peers, both in terms of scale and area of operation. These findings will also help the government prioritize assistance measures for MWUs that are suffering from acute performance gaps, and to devise a strategic national plan to revitalize Indonesia’s water sector. Originality/value – This paper enriches the body of knowledge by filling in knowledge gaps relating to benchmarking in Indonesia’s water industry, as well as in the application of ensemble two-stage DEA and ANN, which are still rare in the literature.

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