IDEAS home Printed from https://ideas.repec.org/a/ids/ijbpma/v17y2016i3p321-344.html
   My bibliography  Save this article

Examining the efficiency-profitability link in Egyptian companies: a non-parametric DEA approach

Author

Listed:
  • Mohamed M. Mostafa

Abstract

The major aim of this research is to examine the link between efficiency and profitability in Egyptian top listed companies using cross-sectional data for the year 2006. This study uses a non-parametric data envelopment analysis (DEA) approach to measure the relative efficiency of 69 companies in Egypt. The results indicate that there is a positive link between efficiency and profitability in Egyptian companies. The results also indicate that the performance of several companies is sub-optimal, suggesting the potential for significant improvements over both profitability and marketability dimensions. Separate benchmarks were derived for possible reductions in resources used, and significant savings are possible on this account. From a policy perspective, this study highlights the economic importance of encouraging increased efficiency throughout Egyptian companies. At the theoretical level, the study empirically confirms the existence of a positive and significant link between efficiency and profitability.

Suggested Citation

  • Mohamed M. Mostafa, 2016. "Examining the efficiency-profitability link in Egyptian companies: a non-parametric DEA approach," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 17(3), pages 321-344.
    • Handle: RePEc:ids:ijbpma:v:17:y:2016:i:3:p:321-344
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=77248
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbpma:v:17:y:2016:i:3:p:321-344. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=3 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.