Performance analysis of listed companies in the UAE-using DEA Malmquist index approach

Article


Majumdar, S. and Asgari, B. 2017. Performance analysis of listed companies in the UAE-using DEA Malmquist index approach. American Journal of Operations Research. 7 (2), pp. 133-151.
TypeArticle
TitlePerformance analysis of listed companies in the UAE-using DEA Malmquist index approach
AuthorsMajumdar, S. and Asgari, B.
Abstract

Data Envelopment Analysis (DEA) is becoming an increasingly popular tool for assessing the relative performance of industries and companies. By applying DEA theory to the non-financial sector, the relative efficiency of 27 listed corporations in the United Arab Emirates (UAE) has been analyzed in this paper. The focus of the study has been on the impact of the financial crisis and the recovery thereafter. Further, the productivity change was decomposed into technical efficiency change and technological change by using the non-para- metric Malmquist Productivity Index (MPI) over the period from 2007 to 2014. Based on Malmquist analysis, we find that the most efficient industries during the post-crisis period were food and beverages, telecommunication and pharmaceuticals. In contrast, the sectors that were adversely affected by the crisis were services, real estate, construction and cements. The break-up of the TFP indicated that the efficiency indices in the top performing industries were driven by technological improvements or frontier effects. The top-per- forming companies in the UAE during the 2007-14 period demonstrated innovation-led growth, aided by the use of better technology, investments in capital equipment, and adoption of new production processes.

KeywordsPerformance, Total Factor Productivity, Data Envelopment Analysis, Malmquist Index, United Arab Emirates
LanguageEnglish
PublisherScientific Research Publishing
JournalAmerican Journal of Operations Research
ISSN2160-8830
Electronic2160-8849
Publication dates
Online31 Mar 2017
Print31 Mar 2017
Publication process dates
Deposited01 Apr 2020
Submitted07 Jan 2017
Accepted28 Mar 2017
Output statusPublished
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Copyright Statement

© 2020 by authors and Scientific Research Publishing Inc.
This work is licensed under the Creative Commons Attribution International License (CC BY 4.0).

Web address (URL)https://doi.org/10.4236/ajor.2017.72010
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