Title: Financial performance evaluation of present petrochemical companies in stock exchange by data envelopment analysis
Authors: Fereshteh Mashhadi; Azam Hosseini Ballam; Hadi Shirouyehzad
Addresses: Department of Industrial Engineering, Islamic Azad University, Najafabad Branch, Isfahan, Iran; Esfahan Oil Refinery Company, 5th Km Tehran, 8335113115, Esfahan, Iran ' Esfahan Oil Refinery Company, 5th Km Tehran, 8335113115, Esfahan, Iran ' Department of Industrial Engineering, Islamic Azad University, Najafabad Branch, Isfahan, Iran
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.
Keywords: performance evaluation; financial records; data envelopment analysis; DEA; firm efficiency; petrochemical industry; financial performance; stock exchange; stock markets; Iran.
International Journal of Productivity and Quality Management, 2015 Vol.16 No.1, pp.17 - 35
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 21 May 2015 *