Abstract
The present research work was conducted to measure the efficiency of the cement companies in Indian Scenario by utilizing the concept of Data Envelopment Analysis during the pre and post period of recession during the recent global turmoil. In the present study two outputs (related to profit and sales) and three inputs related to cost are taken into consideration .Input oriented variable return to scale has been used for this paper. Linear program has been developed to measure the efficiency and super efficiency scores of the different cement companies. A further endeavour has been made in this paper to understand if recession really did have any impact on the cement industry by utilizing spearman rank correlation technique.
Highlights
The present research work was conducted to measure the efficiency of the cement companies in Indian Scenario by utilizing the concept of Data Envelopment Analysis during the pre and post period of recession during the recent global turmoil
The entire analysis is segregated between Pre recession period (2004-05 to 2006-07) and Post recession period (2007-08 to 2009-10) so as to capture any changes occurring in relation to the efficiency evaluation of the Indian cement industry during these two periods
Each and every company in the cement industry is known as the Decision making units for the study
Summary
Data Envelopment analysis is a non parametric approach to measure the efficiency of the decision making units. Banker, Charnes and Cooper (1984) in their paper have developed mathematical programming to measure the operational efficiency of the decision making units. Banker, Charnes and Cooper (1984) in their paper have developed mathematical programming to measure the operational efficiency of the decision making units. Data Envelopment analysis is a non parametric approach to measure the efficiency of the decision making units. The past paper of Banker, Charnes and Cooper was referred so as to formulate the linear program to compute the efficiency score for the Indian cement companies. The other past literatures reviewed by me for the present study are as follows: Karimzadeh (2012) in his paper have tried to investigate into the efficiency of the Indian commercial banks by applying the concept of Data envelopment analysis. Feroz, Kim and Raab (2003) have made an attempt to understand the advantages of applying data envelopment analysis over ratio analysis to measure the efficiency of the firms
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