Performance analysis of Thai finance companies using ratio and data envelopment analysis (DEA) techniques | |
| Author | Newa, Sunil Kumar |
| Call Number | AIT Thesis no.SM-00-2 |
| Subject(s) | Financial institutions--Evaluation Data envelopment analysis |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | This research study evaluates the performance of Thai finance companies from period 1991 to 1997 using ratio and Data Envelopment Analysis (DEA) techniques. The use of DEA technique offers certain advantages over the use of simple ratios. Being a multidimensional technique, DEA incorporates multiple aspects of performance in contrast to the ratios. The two techniques are compared and a new technique that combines the advantages of each technique is also used. An integrated framework is used for ratio analysis. The ratios are interrelated and capture different aspects of performance. It shows that the performance of Thai finance companies have migrated from high turnover to high margin from 1991 to 1993, and it has continuously deteriorated after 1994. Efficiency models for productivity and profitability are used of DEA analysis. The analysis was able to (1) identify efficient firms, (2) quantify increment in outputs or decrement in inputs for inefficient firms to become efficient, (3) identify of best-practice firms, and (4) quantify inefficiency due to the scale of operation. DEA technique is found to be unsuitable for identifying trend in performance over the years since DEA efficiency scores do not have any anchor for comparison across the periods. The combined technique- DEA-Ratio uses the performance ratios as outputs of a DEA model, which does not have any inputs. This technique identifies unambiguous benchmarks for the ratios such that all ratios of the benchmark firm are better. |
| Year | 2000 |
| Type | Thesis |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Swierczek, Fredric W.; |
| Examination Committee(s) | Ramachandran, N. ;Bechter, Clemens; |
| Degree | Thesis (M.B.A.) - Asian Institute of Technology, 2000 |