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Financial performance evaluation of present petrochemical companies in stock exchange by data envelopment analysis

Author

Listed:
  • Fereshteh Mashhadi
  • Azam Hosseini Ballam
  • Hadi Shirouyehzad

Abstract

Evaluating companies' performance and comparing them have enjoyed stakeholders' attention. Also, since analysing financial ratios is not capable of finding the most desirable performance and determining inefficient units, it is possible to employ data envelopment analysis (DEA) for using several financial criteria in order to determine evaluation rate of financial performance. The present study tries to shed light upon DEA through a financial approach to judge the performance of present petrochemical companies in stock exchange that submitted their financial records to stock exchange organisations between 2006-2011. After calculating financial ratios and entering data in an input-based BCC model, in DEA Frontier 2007 software, the efficiency of each company in end of each year will be measured and next, geometric mean of efficiency for related year will be gauged. Finally, results reveal that Farabi Petrochemical Company is financially the most efficient and Jam Petrochemical Company is financially the most inefficient.

Suggested Citation

  • Fereshteh Mashhadi & Azam Hosseini Ballam & Hadi Shirouyehzad, 2015. "Financial performance evaluation of present petrochemical companies in stock exchange by data envelopment analysis," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 16(1), pages 17-35.
    • Handle: RePEc:ids:ijpqma:v:16:y:2015:i:1:p:17-35
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    Cited by:

    1. Héctor Darío Balseiro Barrios & Jorge Armando Luna Amador & Francisco Javier Maza Ávila, 2021. "Análisis de eficiencia financiera de las empresas cotizantes en el mercado accionario colombiano para el periodo 2012- 2017," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 13(1), pages 19-41, March.

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