Abstract

A sample of thirty listed Australian gold producers is used to compare the financial perfor Mance measures provided by accounting‐based financial ratios, and production perfor Mance as measured by efficiency indices. The results indicate that simple ratios are unlikely to provide efficiency rankings similar to those obtained from multiple‐input, multiple‐output methodologies. However, whilst the two methods can disagree substantially on the relative perfor Mance of individual decision‐making units, when used jointly the results can offer valuable insights into the concept of firm perfor Mance.

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