Lu, Wen-Min and Kweh, Qian Long and Ting, Irene Wei Kiong (2024) Overlooked effect of negative data on efficiency analysis. OPSEARCH. pp. 1-10. ISSN 0975-0320. (In Press / Online First) (In Press / Online First)
![[img]](http://umpir.ump.edu.my/style/images/fileicons/other.png) |
Pdf
Lu et al. (2024)_OPSEARCH.pdf Restricted to Repository staff only Download (616kB) | Request a copy |
Abstract
Financial data may contain nonpositive values, which can be addressed using logarithm transformation or the addition of constant. However, production scale is important when employing data envelopment analysis (DEA) to assess the efficiency of input-output transformation. Traditional techniques of handling negative data values in DEA, such as adding an arbitrary constant or substituting a small positive value, fail to account for the effect of production scale on efficiency and can produce misleading findings. This study thus proposes a novel method for dealing with negative output values in DEA by revising them based on production scale. Overall, this study enables better informed decision-making by improving the accuracy of efficiency assessments in complex data settings containing both positive and negative values.
| Item Type: | Article |
|---|---|
| Additional Information: | Indexed by Scopus |
| Uncontrolled Keywords: | Data envelopment analysis; Negative data; Production scale |
| Subjects: | H Social Sciences > HG Finance |
| Faculty/Division: | Faculty of Industrial Management |
| Depositing User: | Dr. Irene Ting Wei Kiong |
| Date Deposited: | 03 Jan 2025 03:33 |
| Last Modified: | 03 Jan 2025 03:33 |
| URI: | http://umpir.ump.edu.my/id/eprint/43398 |
| Download Statistic: | View Download Statistics |
Actions (login required)
 |
View Item |