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Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk

Trade facilitation helps to improve the export and import performances which drive the economy of Malaysia. This interconnectedness is achievable with smooth logistics operations for the fulfilment of goods and services in the accurate amount and condition to the proper location at the exact time. T...

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Main Author: Lee, Pei Fun
Format: Final Year Project / Dissertation / Thesis
Published: 2023
Subjects:
HB Economic Theory
HC Economic History and Conditions
HD Industries. Land use. Labor
HF Commerce
HG Finance
Online Access:http://eprints.utar.edu.my/5759/1/the_SIA_2023_LPF.pdf
http://eprints.utar.edu.my/5759/
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spelling my-utar-eprints.57592023-09-18T13:48:35Z Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk Lee, Pei Fun HB Economic Theory HC Economic History and Conditions HD Industries. Land use. Labor HF Commerce HG Finance Trade facilitation helps to improve the export and import performances which drive the economy of Malaysia. This interconnectedness is achievable with smooth logistics operations for the fulfilment of goods and services in the accurate amount and condition to the proper location at the exact time. Therefore, the logistics industry is a main driver that forms the bridge between the sourcing entity and the consumption point. As such, the financial efficiency of the logistics companies is important to ensure the continuous support to the economy of Malaysia. Data Envelopment Analysis (DEA) is a linear programming model which can be used to optimize the financial efficiency of the listed logistics companies in Malaysia. The efficiency is the ratio of the weighted sum of output to the weighted sum of input and can range from zero to one as the maximum efficiency is one. Logistics companies perform a series of operational activities to move goods and fulfil orders and are prone to operational risk. Therefore, operational risk is an important factor for the evaluation of efficiency of the listed logistics companies in Malaysia. Moreover, no study has measured the efficiency of the listed logistics companies in Malaysia with operational risk in the current DEA model. In view of the research gap, this research intends to propose an enhanced DEA model with iii operational risk to optimize the financial efficiency of the listed logistics companies in Malaysia. The listed logistics companies in Malaysia are assessed and compared between the existing and enhanced DEA models. The results of the enhanced DEA model show that 55.56% of the listed logistics companies are efficient. The efficient and inefficient listed logistics companies have been determined based on the optimal solution of enhanced DEA model. The efficient listed logistics companies are AIRPORT, COMPLET, GDEX, HUBLINE, ILB, MISC, MMCCORP, NATWIDE, POS, PDZ, PRKCORP, SEEHUP, SYSCORP, TNLOGIS and TOCEAN. The range of efficiency of the enhanced DEA model is from 0.6725 to 1.0000 while the average efficiency is 0.9600. This study has also determined the optimal weights of the output and input variables to the maximization of the efficiency of the listed logistics companies with the enhanced DEA model. The operational risk factor, which is the basic indicator approach ( 2023-05 Final Year Project / Dissertation / Thesis NonPeerReviewed application/pdf http://eprints.utar.edu.my/5759/1/the_SIA_2023_LPF.pdf Lee, Pei Fun (2023) Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk. Master dissertation/thesis, UTAR. http://eprints.utar.edu.my/5759/
institution Universiti Tunku Abdul Rahman
building UTAR Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tunku Abdul Rahman
content_source UTAR Institutional Repository
url_provider http://eprints.utar.edu.my
topic HB Economic Theory
HC Economic History and Conditions
HD Industries. Land use. Labor
HF Commerce
HG Finance
spellingShingle HB Economic Theory
HC Economic History and Conditions
HD Industries. Land use. Labor
HF Commerce
HG Finance
Lee, Pei Fun
Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk
description Trade facilitation helps to improve the export and import performances which drive the economy of Malaysia. This interconnectedness is achievable with smooth logistics operations for the fulfilment of goods and services in the accurate amount and condition to the proper location at the exact time. Therefore, the logistics industry is a main driver that forms the bridge between the sourcing entity and the consumption point. As such, the financial efficiency of the logistics companies is important to ensure the continuous support to the economy of Malaysia. Data Envelopment Analysis (DEA) is a linear programming model which can be used to optimize the financial efficiency of the listed logistics companies in Malaysia. The efficiency is the ratio of the weighted sum of output to the weighted sum of input and can range from zero to one as the maximum efficiency is one. Logistics companies perform a series of operational activities to move goods and fulfil orders and are prone to operational risk. Therefore, operational risk is an important factor for the evaluation of efficiency of the listed logistics companies in Malaysia. Moreover, no study has measured the efficiency of the listed logistics companies in Malaysia with operational risk in the current DEA model. In view of the research gap, this research intends to propose an enhanced DEA model with iii operational risk to optimize the financial efficiency of the listed logistics companies in Malaysia. The listed logistics companies in Malaysia are assessed and compared between the existing and enhanced DEA models. The results of the enhanced DEA model show that 55.56% of the listed logistics companies are efficient. The efficient and inefficient listed logistics companies have been determined based on the optimal solution of enhanced DEA model. The efficient listed logistics companies are AIRPORT, COMPLET, GDEX, HUBLINE, ILB, MISC, MMCCORP, NATWIDE, POS, PDZ, PRKCORP, SEEHUP, SYSCORP, TNLOGIS and TOCEAN. The range of efficiency of the enhanced DEA model is from 0.6725 to 1.0000 while the average efficiency is 0.9600. This study has also determined the optimal weights of the output and input variables to the maximization of the efficiency of the listed logistics companies with the enhanced DEA model. The operational risk factor, which is the basic indicator approach (
format Final Year Project / Dissertation / Thesis
author Lee, Pei Fun
author_facet Lee, Pei Fun
author_sort Lee, Pei Fun
title Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk
title_short Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk
title_full Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk
title_fullStr Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk
title_full_unstemmed Evaluation on the financial efficiency of listed logistics companies in Malaysia using enhanced data envelopment analysis model with operational risk
title_sort evaluation on the financial efficiency of listed logistics companies in malaysia using enhanced data envelopment analysis model with operational risk
publishDate 2023
url http://eprints.utar.edu.my/5759/1/the_SIA_2023_LPF.pdf
http://eprints.utar.edu.my/5759/
_version_ 1778167135013437440
score 13.211869

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