Evaluation of Operating Performance of Listed Companies in Taiwan’s Tourism Industry - Application of Data Envelopment Analysis

Abstract

Data envelopment analysis is an efficiency measurement method proposed by Charnes, Cooper and Rhodes in 1978, including CCR model efficiency analysis and BCC model efficiency analysis, which is used to evaluate the relative efficiency of decision-making units. The measured efficiency value is the most favorable result of the evaluated unit under objective circumstances. This article applies data envelopment analysis method to evaluate the performance of listed companies in Taiwan's tourism industry. After analysis, it was found that the total efficiency of the six tourism industries including Huayuan, No. 1 Store, Gourmet KY, Wangpin, Xiongshi, and Holaday is effective, while the total efficiency of the three tourism industries including Farglory, Phoenix, and Xintiandi is not Effective, but technical efficiency is still effective. Except for the tourism industry whose total efficiency is effective, its returns to scale remain unchanged. Two tourism industries, such as Guobin and Jinghua, have diminishing returns to scale because their return to scale value is >1 and should reduce their business scale. The returns to scale of other tourism industries are all Increasingly, it is recommended to expand the scale of operations.