Title: Analysing the determinants of technical efficiency in major Chinese retail firms: a bootstrap data envelopment analysis (DEA) and truncated regression approach

Authors: Oswin Aganda Anaba; Benjamin Azembila Asunka; Dawuda Abudu; Obed Dalad Mba; Edmund Nana Kwame Nkrumah

Addresses: Department of Liberal Studies, School of Applied Science and Arts, Bolgatanga Technical University, P.O. Box 767, Sumbrungu-Bolgatanga, Ghana ' Department of Marketing, School of Business and Management Studies, Bolgatanga Technical University, P.O. Box 767, Sumbrungu-Bolgatanga, Ghana ' Department of Accountancy and Finance, School of Business and Management Studies, Bolgatanga Technical University, P.O. Box 767, Sumbrungu-Bolgatanga, Ghana ' School of Engineering, Bolgatanga Technical University, P.O. Box 767, Sumbrungu-Bolgatanga, Ghana ' Department of Doctoral in Business Administration, Nobel International Business School, South Legon, Accra, Ghana

Abstract: This study examines the technical efficiency of major domestic retail enterprises using bootstrap data envelopment analysis (DEA) and truncated regression analysis. Key findings reveal that large businesses and department stores are more technically efficient than small medium enterprises (SMEs). Technical efficiency positively correlates with operating income-to-sales and interest coverage ratios but negatively with debt and quick ratios. Additionally, firm age, size, and business type positively influence efficiency. Managerially, retail firms should optimise operations and adopt new technologies to enhance efficiency. Policymakers should support firms during economic downturns through fiscal measures like low-interest loans and tax cuts. The study's cross-sectional nature suggests future research should include longitudinal analysis for deeper insights.

Keywords: retail enterprises; bootstrap; DEA; data envelopment analysis; truncated regression; technical efficiency; determinants; SMEs; large enterprises; department shops; china.

DOI: 10.1504/AJFA.2025.146033

American Journal of Finance and Accounting, 2025 Vol.8 No.3, pp.217 - 232

Received: 17 Apr 2024
Accepted: 20 Oct 2024
Published online: 01 May 2025 *