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Overlooked effect of negative data on efficiency analysis

Financial data may contain nonpositive values, which can be addressed using logarithm transformation or the addition of constant. However, production scale is important when employing data envelopment analysis (DEA) to assess the efficiency of input-output transformation. Traditional techniques of h...

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Main Authors: Lu, Wen-Min, Kweh, Qian Long, Ting, Irene Wei Kiong
Format: Article
Language:English
Published: Springer Nature 2024
Subjects:
HG Finance
Online Access:http://umpir.ump.edu.my/id/eprint/43398/1/Lu%20et%20al.%20%282024%29_OPSEARCH.pdf
http://umpir.ump.edu.my/id/eprint/43398/
https://doi.org/10.1007/s12597-024-00797-7
https://doi.org/10.1007/s12597-024-00797-7
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spelling my.ump.umpir.433982025-01-03T03:33:45Z http://umpir.ump.edu.my/id/eprint/43398/ Overlooked effect of negative data on efficiency analysis Lu, Wen-Min Kweh, Qian Long Ting, Irene Wei Kiong HG Finance Financial data may contain nonpositive values, which can be addressed using logarithm transformation or the addition of constant. However, production scale is important when employing data envelopment analysis (DEA) to assess the efficiency of input-output transformation. Traditional techniques of handling negative data values in DEA, such as adding an arbitrary constant or substituting a small positive value, fail to account for the effect of production scale on efficiency and can produce misleading findings. This study thus proposes a novel method for dealing with negative output values in DEA by revising them based on production scale. Overall, this study enables better informed decision-making by improving the accuracy of efficiency assessments in complex data settings containing both positive and negative values. Springer Nature 2024-06-05 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/43398/1/Lu%20et%20al.%20%282024%29_OPSEARCH.pdf Lu, Wen-Min and Kweh, Qian Long and Ting, Irene Wei Kiong (2024) Overlooked effect of negative data on efficiency analysis. OPSEARCH. pp. 1-10. ISSN 0975-0320. (In Press / Online First) (In Press / Online First) https://doi.org/10.1007/s12597-024-00797-7 https://doi.org/10.1007/s12597-024-00797-7
institution Universiti Malaysia Pahang Al-Sultan Abdullah
building UMPSA Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Pahang Al-Sultan Abdullah
content_source UMPSA Institutional Repository
url_provider http://umpir.ump.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Lu, Wen-Min
Kweh, Qian Long
Ting, Irene Wei Kiong
Overlooked effect of negative data on efficiency analysis
description Financial data may contain nonpositive values, which can be addressed using logarithm transformation or the addition of constant. However, production scale is important when employing data envelopment analysis (DEA) to assess the efficiency of input-output transformation. Traditional techniques of handling negative data values in DEA, such as adding an arbitrary constant or substituting a small positive value, fail to account for the effect of production scale on efficiency and can produce misleading findings. This study thus proposes a novel method for dealing with negative output values in DEA by revising them based on production scale. Overall, this study enables better informed decision-making by improving the accuracy of efficiency assessments in complex data settings containing both positive and negative values.
format Article
author Lu, Wen-Min
Kweh, Qian Long
Ting, Irene Wei Kiong
author_facet Lu, Wen-Min
Kweh, Qian Long
Ting, Irene Wei Kiong
author_sort Lu, Wen-Min
title Overlooked effect of negative data on efficiency analysis
title_short Overlooked effect of negative data on efficiency analysis
title_full Overlooked effect of negative data on efficiency analysis
title_fullStr Overlooked effect of negative data on efficiency analysis
title_full_unstemmed Overlooked effect of negative data on efficiency analysis
title_sort overlooked effect of negative data on efficiency analysis
publisher Springer Nature
publishDate 2024
url http://umpir.ump.edu.my/id/eprint/43398/1/Lu%20et%20al.%20%282024%29_OPSEARCH.pdf
http://umpir.ump.edu.my/id/eprint/43398/
https://doi.org/10.1007/s12597-024-00797-7
https://doi.org/10.1007/s12597-024-00797-7
_version_ 1822924900314120192
score 13.232424

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