Abstract
The purpose of this study is to evaluate the performance of Turkish firms listed in corporate governance index using some financial variables and corporate governance. The research involves 31 nonfinancial firms listed in Borsa Istanbul (BIST), and the data are obtained from the firms’ financial statements in 2015. For this purpose, the firms’ performance was evaluated by conducting the Data Envelopment Analysis (DEA), which is a Multicriteria Decision-Making (MCDM) method. In this study, the analysis was conducted in two steps. In the first step, the DEA model was built using total assets and total equity as inputs with sales and profit as outputs. In the second step, the same DEA model was repeated by adding corporate governance rating as a new input only. Then, it was observed that the efficiency of the firms increased significantly in almost every aspect. This increase indicates that it was required to use corporate governance rating to get an appropriate firm performance as well as financial values.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Babacan A, Kisakürek MM, Özcan S (2015) IMKB’ye kote edilmiş firmalarin VZA yöntemi ile performans ölçümleri. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi 24(24)
Banker RD, Charnes A, Cooper WW (1984) Some models for estimating technical and scale inefficiencies in data envelopment analysis. Manag Sci 30(9):1078–1092
Basu S (1977) Investment performance of common stocks in relation to their price‐earnings ratios: a test of the efficient market hypothesis. J Financ 32(3):663–682
Black BS, Jang H, Kim W (2003) Does corporate governance affect firm value? Evidence from Korean. European Corporate Governance Institute Finance Working Paper
Charnes A, Cooper WW, Rhodes E (1978) Measuring the efficiency of decision making units. Eur J Oper Res 2(6):429–444
Coelli T (2016) http://www.owlnet.rice.edu/~econ380/DEAP.PDF
Cooper WW, Seiford LM, Tone K (2000) Data envelopment analysis: a comprehensive text with models, applications, references and DEA-Solver software. Kluwer, Norwell, MA
Farrell MJ (1957) The measurement of productive efficiency. J R Stat Soc Ser A Gen 120(3):253–290
Gupta PP, Kennedy DB, Weaver SC (2009) Corporate governance and firm value: evidence from Canadian capital markets. Corp Ownersh Control J 6(3)
Hermalin BE (2008) Firm value and corporate governance: does the former determine the latter? Available at SSRN 1080090
İlhan EGE, Topaloğlu EE, Özyamanoğlu M (2013) Finansal performans ile kurumsal yönetim notlari arasindaki ilişki: BIST üzerine bir uygulama. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD) 5(9)
Kyereboah-Coleman A (2008) Corporate governance and firm performance in Africa: a dynamic panel data analysis. J Stud Econ Econ 32(2)
Maher M, Anderson T (1999) Corporate governance: effect on firm performance and economic development
Sakarya Ş (2012) İMKB kurumsal yönetim endeksi kapsamındaki şirketlerin kurumsal yönetim derecelendirme notu ve hisse senedi getirileri arasındaki ilişkinin olay çalışması (event study) yöntemi ile analizi. Uluslararası Yönetim İktisat ve İşletme Dergisi 7(13):147–162
Tehrani R, Mehragan MR, Golkani MR (2012) A model for evaluating financial performance of companies by data envelopment analysis: a case study of 36 corporations affiliated with a private organization. Int Bus Res 5(8):8
Thannassaoulis E (2001) Introduction to theory and application of data envelopment analysis. Kluwer, Norwell, MA
Zhu J (2014) Quantative models for performance evaluation and benchmarking: data envelopment analysis with spreadsheets. Springer, Boston, MA
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Aksoy, E.E., Yildiz, A. (2017). Applying Data Envelopment Analysis to Evaluate Firm Performance. In: Hacioğlu, Ü., Dinçer, H., Alayoğlu, N. (eds) Global Business Strategies in Crisis. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-44591-5_22
Download citation
DOI: https://doi.org/10.1007/978-3-319-44591-5_22
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-44590-8
Online ISBN: 978-3-319-44591-5
eBook Packages: Business and ManagementBusiness and Management (R0)