Performance Evaluation Of Companies Research Articles

Effect of Exchange Rate Fluctuation on the Financial Performance Evaluation of Multinational Companies in Nigeria

The research work examined the effect of exchange rate fluctuation on performance evaluations of multinational companies in Nigeria. The objective of the study was to examine how foreign exchange affects financial performance of multinational companies in Nigeria. This Study is based on the transaction cost theory, liquidity theory, inflation theory and managerial theory of firm performance. Secondary data source was explored in presenting the facts of the situation. The secondary data were obtained from relevant literatures, Central Bank of Nigeria Statistical Bulletin and annual report of selected multinational companies in Nigeria. Data were tested using the Ordinary Least Square Linear Regression model. Findings show that exchange rate fluctuation has significant effect on performance of multinational companies in Nigeria. As a result, the study concluded that exchange rate instability affects the operations of companies in Nigeria vis-à-vis international trade with other countries of the world. It was recommended that, Multinational Companies should develop a robust foreign exchange risk management framework which will clearly show its currency risk assessment procedures and implementation of foreign exchange risk management strategy. These strategies should be monitored and adjusted regularly. Keywords: Exchange rate, Financial Performance, Inflation rate, Interest rate, Multinationals companies, Return on Assets. DOI : 10.7176/RJFA/10-16-03 Publication date : August 31 st 2019

Performance Evaluation of Major Asian Airline Companies Using DEA Window Model and Grey Theory

Being an essential part of the global transport system, airline transportation is capable of delivering fast service for passengers and commodities. In the past decade, the Asia aviation industry has experienced a high growth rate of transport due to higher economic development in this area, and this trend is expected to continue in the next two decades. However, competition in the Asia aviation industry will increase dramatically. To survive in the Asia aviation industry, the Asia airline companies should understand their current and future performance. A methodology for this purpose is required. This paper proposes a hybrid approach, combining Grey model GM(1,1) and Data Envelopment Analysis (DEA) Window model, to satisfy this need. The hybrid approach proposed in this research has been used to evaluate the current and future performance of 16 major Asia airline companies. The DEA Window analysis showed that airline companies Emirates, Cebu Pacific, and Sri Lankan were leading companies in the time period of 2012 to 2016, while Singapore Airlines, Japan Airlines, and All Nippon Airways followed behind. We found that Chinese airline corporations are rising in the Asia aviation industry. All 16 Asia airline companies studied in the research were found to improve their productivity in the time period of 2017 to 2021 as their Malmquist productivity indexes (MPIs) are greater than 1.

Performance Evaluation of Pallet Rental Companies: A Non-Oriented Super-Efficiency Integer-Valued DEA Model

Pallets play an important role in logistics. It is well known that pallet rental is beneficial to both pallet users and society, and the pallet rental industry is very large nowadays. A non-oriented super-efficiency integer-valued DEA (data envelopment analysis) model for the performance evaluation of pallet rental companies is presented. The method differs from traditional models in that (1) it can be used to accurately estimate the performance of efficient pallet rental companies with integer-valued and real-valued variables; (2) it is an alternative approach to providing numerical super-efficiency scores for efficient pallet rental companies when input-oriented or output-oriented VRS (variable returns to scale) super-efficiency models are infeasible for them. A case study of nine pallet rental companies proves the advantages of the proposed model, and it shows that the efficiency gap among pallet rental companies is very large. Based on the results, some suggestions on the development of the pallet rental industry are proposed. The methodology and results would provide valuable contributions to the decision-making processes of both pallet rental companies and their customers.

Indicators of reliability and efficiency of construction production processes

The study contributes to interrelation of innovative and traditional indicators of reliability and efficiency of construction production processes. The object of the article is organizational and technological potential of the processes of construction production and two of its research directions: 1) an infographic modeling of the parameters for the creation and functioning of systems of organizational design and management in construction; 2) a concept of organizational and technological potential (of the efficiency of the construction process). An important aspect of the sufficiency of the potential of the reliability of construction production is the use of a balanced system of interrelated indicators. The subjects of research in the article are innovative and traditional indicators of reliability and efficiency of construction production processes. The task of the study was to analyze interrelation of innovative and traditional indicators and determine groups of interrelated indicators and determine the average values of the readiness indicator value ranges. An infographic modeling method and a predominantly deterministic inverse multi-stage dynamic perspective factor analysis have been used in the study. The four groups of interrelated indicators have been determined for a construction company performance evaluation: financial, client, internal business processes, training and development. The average values of the readiness indicator value ranges have been obtained by the average statistical values of mean time between failures: 0.86-0.92 for technical equipment and SMIT; 0.80-0.85 for material resources and components; 0.78-0.83 for labor resources.

Comparative analysis of company performance evaluation methods

The evaluation of a company's performance is an integral part of the management of every company, which allows determining the impact of business management decisions on the performance results, as well as the direction of the results and the decisions that need to be made to improve them. Traditionally, a company's performance is evaluated on the basis of an analysis of financial performance indicators, but it is noted that in today's dynamic business environment the timely control of the performance is crucial, thus, there is an increasing attention on non-financial performance indicators. The aim of the article is to investigate and compare the modern methods for company performance evaluation that are based on the analysis of financial and non-financial performance indicators. The research is carried out using systematic analysis of scientific literature, comparison, and aggregation methods. First of all, the article unfolds the essence of the concept of the company performance evaluation and highlights the differences between traditional and modern performance evaluation systems. Moreover, the advantages of non-financial performance indicators are compared with financial indicators. Furthermore, a classification scheme for performance evaluation methods is provided; by identifying their main advantages and disadvantages the most popular and widely used modern performance evaluation methods are overviewed: economic value added method, balanced scorecard, performance prism, performance pyramid, six-sigma model and multi-criteria company performance evaluation method. Finally, according to certain criteria, a comparative analysis of the latter methods is performed. The comparative analysis confirms that non-financial performance indicators complement financial indicators; therefore, in the process of a company's performance evaluation, modern performance evaluation methods, combining financial and non-financial performance indicators and allowing the performance to be evaluated both quantitatively and qualitatively, should be used. However, there is no single method that would be appropriate for all companies, so further work can be targeted at establishing a multi-criteria performance evaluation method that would satisfy the needs of a particular business' activity and targets for evaluation.

Financial performance evaluation of companies listed on Tehran Stock Exchange

PurposeThis paper aims to evaluate the financial performance of companies listed on Tehran Stock Exchange by using negative data envelopment analysis (DEA) approach.Design/methodology/approachFirst, the financial metrics for performance evaluation were extracted and then filtered based on the experts’ opinions. Upon choosing the appropriate financial measures, the financial information of 72 companies selected from four automotive, pharmaceutical, petrochemical and cement industries were collected, and the criteria values were also measured. The financial performance of selected companies was assessed using negative data bounded adjusted measure in the DEA, and efficient and inefficient companies were identified. Finally, the efficient companies were ranked using Andersen and Petersen model.FindingsThe required analysis was conducted, and the financial performance of selected companies listed on Tehran Stock Exchange was evaluated. There were 58 efficient companies with a performance value of 1; 14 companies became inefficient because the efficiency size was less than 1; therefore, reference units were also introduced to the managers for efficiency of inefficient companies.Originality/valueThe aim of this study was to identify the required financial criteria and to determine an appropriate model for performance evaluation based on negative DEA. The findings can help shareholders to identify efficient companies and make the optimal portfolio accordingly; the managers of inefficient companies can also take the proper reforming actions to improve efficiency.

A new approach for performance evaluation of energy-related enterprises

Oil is among the most effective and the largest industries in the world. Given that it supplies a large percentage of the world’s energy and plays a significant role in the national power and international credit of countries, it has a huge impact on our world today. Iran has huge oil reserves, and plays a key role in the exchange of the required energy in the world. In order to improve the performance of this critical industry, it is necessary to evaluate the performance of petroleum producing companies. The main purpose of this paper is to present the first three-stage data envelopment analysis-based approach, integrated with a balanced scorecard for performance evaluation of oil companies. Regarding the cause and effect relationships among different aspects of the balanced scorecard, its indicators are employed as input and output variables of the data envelopment analysis model and the efficiency is calculated. The results indicated that among the oil companies investigated in this paper, the National Iranian South Oil Company and Aravindan Oil & Gas Company recorded the highest and lowest efficiencies, respectively. The proposed approach by authors provides a valuable tool for managers in the oil industry to evaluate the performance and take action for performance improvement.

Performance evaluation of the companies constructing highways

Methodical bases for performance evaluation of the road construction company which is carrying out highway construction are based on integrated indicator calculation. This indicator considers interrelation of various internal and external environment factors. These factors are subdivided into three main groups by the authors: organizational and technological factors, technical factors and financial and economic factors. The suggested method of integrated indicator calculation for performance evaluation has been tested in the Tyumen road construction company. Testing confirms an opportunity to estimate the company position and utilization flexibility of calculation in practice.

Financial Performance Evaluation of IT Companies through Two Stage- DEA

Data Envelopment Analysis (DEA) is a nonparametric technique for evaluating the relative efficiency of a set of homogenous decision making units (DMU) by using a ratio of weighted sum of outputs to the weighted sum of inputs. There are numerous advances emerged in DEA in recent past based on the ever-changing needs of the business organizations. This study applies a novel two-stage DEA framework where projected or best-practice revenues are calculated in the first stage and are fed as inputs into the second stage. We use this method to examine the operational and stock market efficiency of select IT companies listed on National Stock Exchange in India for period of Ten years from 2007 to 2016. Results indicate that only two companies are on efficient frontier in the both stage I and II. Most companies are neither efficient in stage-I nor in stage-II. We discuss the intuition of the results as well as the implications for practice.

Ecological and economic model of performance evaluation of the companies involved in the responsible care® program

Ecological and economic model of performance evaluation of the companies involved in the responsible care® program

Financial Performance Evaluation of Turkish Construction Companies in Istanbul Stock Exchange (BIST)

Financial performance evaluation of construction companies is a kind of multi-criteria decision making (MCDM) problem. The decision makers need a wide range of performance indicators in order to ensure that appropriate decisions can be made. The aim of this study is to evaluate the financial performance of Turkish construction companies whose shares are publicly traded in Istanbul Stock Exchange (Borsa Istanbul-BIST) during 2012-2015 period using multi criteria decision techniques. For this purpose, Grey Relations Analysis and Analytical Network Process were used in examining the data related to these companies. This model is applied to a case study for the financial performance evaluation of 7 construction companies (Anel, ED?P, Enka, Kuyumcukent, ORGE, SAN-EL, Ye?il Yap?) in Turkey. Financial performance indicators namely Asset Growth Rate, Operating Costs/Net Sales, Return on Asset, Net Profit Margin, Return on Equity, Current Ratio, Long Term Assets/Total Assets and Quick Ratio are used for ranking the firms. The findings of this paper would demonstrate the financial performance of the Turkish construction companies and would help construction companies’ managers and investors to evaluate the performance of each company and compare it with their competitors’.

Evaluation of process performance in companies operating in Slovakia

One of the current approaches to performance management is based on examination of organisational performance through measurement and evaluation of the processes. Processes provide an excellent basis for the arrangement of a measurement system and performance management. The application of the process approach in performance management is based on the evaluation of processes rather than on the output results. Based on our research, we bring findings about approaches to process performance evaluation of companies operating in Slovakia. The aim of our research is to assess current approaches for evaluation of process performance in the context of application of process orientation in companies operating in Slovakia. We used questionnaires to collect data. Our sample consists of 137 companies from various sectors, sizes and age to obtain a broader overview. The results show the level of utilisation of process management and approaches to evaluation of process performance towards process improvement. Keywords: Performance measurement, business processes, process performance;

A study on ‘Performance Evaluation of Select Textile Companies An Empirical Analysis

A study on ‘Performance Evaluation of Select Textile Companies An Empirical Analysis

The relationship between capital structure and accounting criteria for evaluating the performance of companies listed on the Tehran Stock Exchange

Capital structure is basically a significant issue in modern financial theory which has drawn the attention of researchers within past few decades. Finance requirement results from two fact. First, value of companies creates demand for financing the purchase of new assets, increase in capacity of plant, employment of new workers, and purchase of raw materials. Second, the finance is determined in terms of financial resources. The present study aims to examine the association between capital structure and accounting and economic standards of performance evaluation of companies enlisted in Tehran Stock Exchange. The independent variable of present study is capital structure (financial leverage) and accounting standards of performance evaluation (i.e. return on assets, the rate of annual stock return, Tobin's Q ratio and the ratio of book to market value) are presumed to be dependent variables. The variable of firm size is regarded as control variable. Data collection method consists of library review and analysis of financial statements. Correlation method and multivariate regression test were used for data analysis. The results of present study suggest that there is a significantly negative association between capital structure and accounting standards of performance evaluation. In addition, the size of company has a significantly negative association with accounting and economic standards of performance evaluation of companies enlisted in Tehran Stock Exchange.

Financial Performance Evaluation of Turkish Energy Companies with Fuzzy AHP and Fuzzy TOPSIS Methods

(ProQuest: ... denotes formulae omitted.)1.IntroductionEnergy is one of the most important parts of economic and social development. In addition, it is indispensable and non-substitutable in numerous fields of daily life. The importance of energy is increasing day by day in consequence of rapid development in technology, population growth and increase in life standards in the public life. Net growth of the consumption of energy is actualized by developing economies. Turkey has an increasing population with its developing economy. It performs transformation from agriculture to industry in contrast to developed economies and it also takes part in the most rapid developing energy markets. While the global energy needs which increases with the amount of %2 in a year, it is at %6-%8 level that 3-4 times more than world average energy need in Turkey (dogaka.gov.tr). From this point, in developing economies like Turkey, energy sectors have important structural links with other sectors of economy. Following the developments of these sectors which provide substantially input to other sector of economy is quite important. Profitability which is one of the main purposes of firms has more importance in competitive business environment. It is the fact that the high performing firms will exist in this competition environment. The performance of these firms will be important not only for their subsistence but also for investors, creditors and economy of the country.In this sense, it is inevitable to evaluate the performances of the energy firms. Financial ratios are widely used for evaluating a firm's performance and financial situation. The performance evaluation of a firm helps investors to make investment decisions as well as gives information about the firms. In the literature, researchers have used various multi-criteria decision making models (MCDM) for the performance evaluation in different sectors. For instance, Feng and Wang (2000); Wang (2008) carried out TOPSIS and Fuzzy TOPSIS methods for the performance evaluation in aviation, Yurdakul and ic (2003) used TOPSIS method in automotive sectors respectively. Chou and Liang (2001) used AHP in shipping, Xia and Wu (2007); Chamodrakas and Martakos (2010) utilized AHP and Fuzzy AHP for supplier selection respectively. Also Yalcin, Bayraktaroglu and Kahraman (2012) used Fuzzy AHP, VIKOR and TOPSIS methods in manufacturing sector. Fuzzy AHP and TOPSIS are carried out in performance evaluation of airports (Chang, Cheng & Wang, 2003); cement firms (Ertugrul & Karakasoglu, 2009) and banks (Mandic, Delibasic, Knezevic & Benkovic, 2014; Mahrooz, Maedeh & Morteza, 2013; Secme, Bayraktaroglu & Kahraman, 2009). Fuzzy AHP (Weifeng & Huihuan, 2008) and Fuzzy TOPSIS methods are also used in banking (Akkoc & Vatansever, 2013). Sun (2010) also utilized Fuzzy AHP and Fuzzy TOPSIS methods for computer companies. Kalogeras, Baourakis, Zopounidis and Van Dijk (2005) employed PROMETHEE for food firms. Ignatius, Behzadian, Malekan and Lalitha (2012) used PROMETHEE II for the performance evaluation of the automotive firms. Erginel and Senturk (2011) carried out Fuzzy ANP for the ranking of GSM operators. For the energy firms Ergul (2010) and Sakarya, Yildirim and Akku§ (2015) used TOPSIS method.As it is seen there are few studies in the literature that Fuzzy AHP and Fuzzy TOPSIS methods are integrated for the performance evaluation of energy firms. In the study, we evaluate the financial performances of energy firms for the period of 2008-2013 with utilizing the Fuzzy AHP and Fuzzy TOPSIS methods. The weights of the criteria are determined by Fuzzy AHP method and then Fuzzy TOPSIS method is used for the rankings of the energy firms. Traditional multi-criteria decision making methods are not used in this study, due to the fact that they are insufficient under uncertainty. After 2008 global crisis, the uncertainty has increased all over the world hence the usage of fuzzy methods can provide better results under these conditions. …

Liquidity Performance Evaluation of Select Steel Companies in India - Descriptive Study

To satisfy the daily needs of an industrial unit, management should think seriously about Liquidity. Working Capital is such of capital that with the help of which a business remains in working condition. It remains live for any business units, Working Capital can be said to be its life. The role of working capital in business is akin to that o heart in the human body. Funds are the life blood of business body. Just as the hart circulates the blood to various organs of body, funds are rotated to various business activities through proper working capital management and any obstruction in the smooth rotation of funds, may causes serious problem in business operations. The generating of income from assets is a very good position in the majority of large and mid-cap companies, but VISA and KALYANI fail to increase its return on assets due to inefficient and ineffective uses of assets, so these companies should take necessary step to increase income by effective utilization of assets.Int. J. Soc. Sc. Manage. Vol. 3, Issue-3: 193-202

An integrated approach for performance evaluation in sustainable supply chain networks (with a case study)

This paper proposes a novel hybrid BSC-DEA framework for performance evaluation in sustainable supply chains. The proposed DEA model is capable of dealing with both qualitative and quantitative indicators while accounting for desirable and undesirable indicators. A tailored network DEA model involving a set of comprehensive sustainability indicators is applied to rank different supply chains from sustainability viewpoint to find the efficient and benchmarked units at each echelon. Then, sustainability indicators are classified into four groups according to BSC perspectives to help policy makers and top managers to have a more comprehensive and thorough understanding of the sustainability with respect to the long- and short term strategies. Finally, a number of sensitivity analyses are performed to identify the effective factors and strengths and weaknesses of each supply chain are identified based on BSC perspectives. To demonstrate the capabilities of the proposed approach, this framework is implemented for performance evaluation of plastic recycling companies in Mazandaran and Golestan provinces of Iran and some helpful managerial insights are derived from the numerical results.

Research on Evaluating the Operation of Power Supply Companies

Power supply companies undertake the important duties of transmission, distribution, the sales of electricity and other social services in the power system, the quality of whose operating conditions directly affect the sustainable development of the corporations and the normal operation of the entire electricity market. The tailored and comprehensive evaluation system to operating conditions in power supply companies has a practical significance. Considering the important role of Power supply companies plays in the national econony, the paper is to develop a performance evaluation index system and comprehensive evaluation model, hoping to provide references for the future performance evaluation management in the power supply enterprises. Based on the concept of comprehensive value, this paper has constructed the four-dimensional comprehensive performance evaluation system combined with the operating characteristics, including the circumstances, the quality of assets, the service level and performance level. Meanwhile, a comprehensive evaluation model is built by the Structural Entropy Weight Method and TOPSIS Method and six power supply companies are taken as sample companies. Empirical analysis results verify the effectiveness of the method. The study proposes a new concept of comprehensive value, develops a new method for performance evaluation of power supply companies.

Performance evaluation of Chinese photovoltaic companies with the input-oriented dynamic SBM model

In Chinese photovoltaic (PV) industry, business groups and overseas listing with respect to specialized operation and domestic listing became two prevalent management practices. The previous studies mainly focus on the impact of business groups and overseas listing on the performance of the firms. However, they neglect the performance comparison of different business models or listing markets. In this paper, we formulate an input-orientated dynamic SBM model, which emphasizes the excesses in input and carry-over resources and enhances the accuracy of the evaluation, to measure the operational efficiency of Chinese PV producers and further explore the impact of business models as well as listing markets on the performance of PV companies. Some managerial findings are concluded in the end and can be referred to by the existing and future PV investors.

The effects of comprehensive income on investors’ judgments

Purpose – This paper aims to understand the effects of different presentation formats on nonprofessional investors’ judgments. Both International Financial Reporting Standards and US Generally Accepted Accounting Principles require an entity to present items of net income and other comprehensive income (OCI) either in one continuous or in two separate, but consecutive, statements but limited understanding exists about their differential effects on evaluation of company performance. Design/methodology/approach – To investigate this research question, we used a two (Financial Position) x two (Format) randomized between-subjects experiment. Ninety-four graduate students assumed the role of investor and participated in this study. Findings – Results of the experiment suggest that participants are more likely to incorporate OCI information presented in the one-statement format than in the two-statement format. Further analysis suggests that participants both assign more weight to OCI and perceive OCI to be relatively more important in the one-statement format than in the two-statement format, especially when the entity suffers an economic loss. Originality/value – Results from this study provide evidence to the Financial Accounting Standards Board and International Accounting Standards Board that should be useful in evaluating the effectiveness of alternative comprehensive income reporting formats and should be of interest to accounting rule-making bodies, investors, publicly traded entities and financial analysts, among others.