Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note

This research attempts to model performance measurement for the firms listed on Indonesia Stock Exchange (IDX) using the stochastic frontier approach.There are 121 firms analyzed over the period of 2000-05 with 726 pooled observations.We also test whether firm’s age, size, market share, manufacturin...

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Main Authors: Handono, T., Prabowo, E., Cabanda, Emilyn
Format: Article
Language:English
Published: Universiti Utara Malaysia Press 2011
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Online Access:http://repo.uum.edu.my/25044/1/IJBF%208%202%202011%2074%2091.pdf
http://repo.uum.edu.my/25044/
http://ijbf.uum.edu.my/index.php/previous-issues/142-the-international-journal-of-banking-and-finance-ijbf-vol-8-no-2-june-2011
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spelling my.uum.repo.250442018-10-25T02:16:02Z http://repo.uum.edu.my/25044/ Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note Handono, T. Prabowo, E. Cabanda, Emilyn HG Finance This research attempts to model performance measurement for the firms listed on Indonesia Stock Exchange (IDX) using the stochastic frontier approach.There are 121 firms analyzed over the period of 2000-05 with 726 pooled observations.We also test whether firm’s age, size, market share, manufacturing classifications and time period have effects on the technical inefficiency of the manufacturing sector. Our findings reveal that the average technical efficiency of the tested firms is 0.7149, which is below the efficiency frontier: factors that affect inefficiency are found and explained.Our research has offered notable original contributions to performance measurement and provides insights or managerial decision making on operational performance of listed firms in an increasingly competitive Indonesian economy. Universiti Utara Malaysia Press 2011 Article PeerReviewed application/pdf en http://repo.uum.edu.my/25044/1/IJBF%208%202%202011%2074%2091.pdf Handono, T. and Prabowo, E. and Cabanda, Emilyn (2011) Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note. International Journal of Banking and Finance (IIJBF), 8 (2). pp. 74-91. ISSN 1675-7227 http://ijbf.uum.edu.my/index.php/previous-issues/142-the-international-journal-of-banking-and-finance-ijbf-vol-8-no-2-june-2011
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Handono, T.
Prabowo, E.
Cabanda, Emilyn
Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note
description This research attempts to model performance measurement for the firms listed on Indonesia Stock Exchange (IDX) using the stochastic frontier approach.There are 121 firms analyzed over the period of 2000-05 with 726 pooled observations.We also test whether firm’s age, size, market share, manufacturing classifications and time period have effects on the technical inefficiency of the manufacturing sector. Our findings reveal that the average technical efficiency of the tested firms is 0.7149, which is below the efficiency frontier: factors that affect inefficiency are found and explained.Our research has offered notable original contributions to performance measurement and provides insights or managerial decision making on operational performance of listed firms in an increasingly competitive Indonesian economy.
format Article
author Handono, T.
Prabowo, E.
Cabanda, Emilyn
author_facet Handono, T.
Prabowo, E.
Cabanda, Emilyn
author_sort Handono, T.
title Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note
title_short Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note
title_full Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note
title_fullStr Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note
title_full_unstemmed Stochastic Frontier Analysis of Indonesian Firm Efficiency: A Note
title_sort stochastic frontier analysis of indonesian firm efficiency: a note
publisher Universiti Utara Malaysia Press
publishDate 2011
url http://repo.uum.edu.my/25044/1/IJBF%208%202%202011%2074%2091.pdf
http://repo.uum.edu.my/25044/
http://ijbf.uum.edu.my/index.php/previous-issues/142-the-international-journal-of-banking-and-finance-ijbf-vol-8-no-2-june-2011
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score 13.211869