Title: An aggregate measure of financial ratios using a multiplicative DEA model

Authors: Ali Emrouznejad, Emilyn Cabanda

Addresses: Aston Business School, Aston University, Birmingham, UK. ' Global Leadership & Entrepreneurship, Regent University, Virginia Beach, VA, USA

Abstract: This paper examines the problems in the definition of the General Non-Parametric Corporate Performance (GNCP) and introduces a multiplicative linear programming as an alternative model for corporate performance. We verified and tested a statistically significant difference between the two models based on the application of 27 UK industries using six performance ratios. Our new model is found to be a more robust performance model than the previous standard Data Envelopment Analysis (DEA) model.

Keywords: multiplicative DEA; data envelopment analysis; financial ratios; GNCP; general non-parametric corporate performance; MNCP; multiplicative non-parametric corporate performance; modelling.

DOI: 10.1504/IJFSM.2010.032435

International Journal of Financial Services Management, 2010 Vol.4 No.2, pp.114 - 126

Accepted: 16 Nov 2009
Published online: 02 Apr 2010 *

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