Selection Input Output by Restriction Using DEA Models Based on a Fuzzy Delphi Approach and Expert Information

Roslah Arsad, Mohammad Nasir Abdullah, Suriana Alias, Zaidi Isa

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Stock evaluation has always been an interesting problem for investors. In this paper, a comparison regarding the efficiency stocks of listed companies in Bursa Malaysia were made through the application of estimation method of Data Envelopment Analysis (DEA). One of the interesting research subjects in DEA is the selection of appropriate input and output parameter. In this study, DEA was used to measure efficiency of stocks of listed companies in Bursa Malaysia in terms of the financial ratio to evaluate performance of stocks. Based on previous studies and Fuzzy Delphi Method (FDM), the most important financial ratio was selected. The results indicated that return on equity, return on assets, net profit margin, operating profit margin, earnings per share, price to earnings and debt to equity were the most important ratios. Using expert information, all the parameter were clarified as inputs and outputs. The main objectives were to identify most critical financial ratio, clarify them based on expert information and compute the relative efficiency scores of stocks as well as rank them in the construction industry and material completely. The methods of analysis using Alirezaee and Afsharian's model were employed in this study, where the originality of Charnes, Cooper and Rhodes (CCR) with the assumption of Constant Return to Scale (CSR) still holds. This method of ranking relative efficiency of decision making units (DMUs) was value-added by the Balance Index. The interested data was made for year 2015 and the population of the research includes accepted companies in stock markets in the construction industry and material (63 companies). According to the ranking, the proposed model can rank completely for 63 companies using selected financial ratio.

Original languageEnglish
Article number012010
JournalJournal of Physics: Conference Series
Volume892
Issue number1
DOIs
Publication statusPublished - 21 Sep 2017

Fingerprint

constrictions
construction industry
Malaysia
ranking
output
Delphi method (forecasting)
margins
decision making
evaluation

ASJC Scopus subject areas

  • Physics and Astronomy(all)

Cite this

Selection Input Output by Restriction Using DEA Models Based on a Fuzzy Delphi Approach and Expert Information. / Arsad, Roslah; Nasir Abdullah, Mohammad; Alias, Suriana; Isa, Zaidi.

In: Journal of Physics: Conference Series, Vol. 892, No. 1, 012010, 21.09.2017.

Research output: Contribution to journalArticle

@article{c5bd5ddb1e0f46d2a42f4ad75e9218b1,
title = "Selection Input Output by Restriction Using DEA Models Based on a Fuzzy Delphi Approach and Expert Information",
abstract = "Stock evaluation has always been an interesting problem for investors. In this paper, a comparison regarding the efficiency stocks of listed companies in Bursa Malaysia were made through the application of estimation method of Data Envelopment Analysis (DEA). One of the interesting research subjects in DEA is the selection of appropriate input and output parameter. In this study, DEA was used to measure efficiency of stocks of listed companies in Bursa Malaysia in terms of the financial ratio to evaluate performance of stocks. Based on previous studies and Fuzzy Delphi Method (FDM), the most important financial ratio was selected. The results indicated that return on equity, return on assets, net profit margin, operating profit margin, earnings per share, price to earnings and debt to equity were the most important ratios. Using expert information, all the parameter were clarified as inputs and outputs. The main objectives were to identify most critical financial ratio, clarify them based on expert information and compute the relative efficiency scores of stocks as well as rank them in the construction industry and material completely. The methods of analysis using Alirezaee and Afsharian's model were employed in this study, where the originality of Charnes, Cooper and Rhodes (CCR) with the assumption of Constant Return to Scale (CSR) still holds. This method of ranking relative efficiency of decision making units (DMUs) was value-added by the Balance Index. The interested data was made for year 2015 and the population of the research includes accepted companies in stock markets in the construction industry and material (63 companies). According to the ranking, the proposed model can rank completely for 63 companies using selected financial ratio.",
author = "Roslah Arsad and {Nasir Abdullah}, Mohammad and Suriana Alias and Zaidi Isa",
year = "2017",
month = "9",
day = "21",
doi = "10.1088/1742-6596/892/1/012010",
language = "English",
volume = "892",
journal = "Journal of Physics: Conference Series",
issn = "1742-6588",
publisher = "IOP Publishing Ltd.",
number = "1",

}

TY - JOUR

T1 - Selection Input Output by Restriction Using DEA Models Based on a Fuzzy Delphi Approach and Expert Information

AU - Arsad, Roslah

AU - Nasir Abdullah, Mohammad

AU - Alias, Suriana

AU - Isa, Zaidi

PY - 2017/9/21

Y1 - 2017/9/21

N2 - Stock evaluation has always been an interesting problem for investors. In this paper, a comparison regarding the efficiency stocks of listed companies in Bursa Malaysia were made through the application of estimation method of Data Envelopment Analysis (DEA). One of the interesting research subjects in DEA is the selection of appropriate input and output parameter. In this study, DEA was used to measure efficiency of stocks of listed companies in Bursa Malaysia in terms of the financial ratio to evaluate performance of stocks. Based on previous studies and Fuzzy Delphi Method (FDM), the most important financial ratio was selected. The results indicated that return on equity, return on assets, net profit margin, operating profit margin, earnings per share, price to earnings and debt to equity were the most important ratios. Using expert information, all the parameter were clarified as inputs and outputs. The main objectives were to identify most critical financial ratio, clarify them based on expert information and compute the relative efficiency scores of stocks as well as rank them in the construction industry and material completely. The methods of analysis using Alirezaee and Afsharian's model were employed in this study, where the originality of Charnes, Cooper and Rhodes (CCR) with the assumption of Constant Return to Scale (CSR) still holds. This method of ranking relative efficiency of decision making units (DMUs) was value-added by the Balance Index. The interested data was made for year 2015 and the population of the research includes accepted companies in stock markets in the construction industry and material (63 companies). According to the ranking, the proposed model can rank completely for 63 companies using selected financial ratio.

AB - Stock evaluation has always been an interesting problem for investors. In this paper, a comparison regarding the efficiency stocks of listed companies in Bursa Malaysia were made through the application of estimation method of Data Envelopment Analysis (DEA). One of the interesting research subjects in DEA is the selection of appropriate input and output parameter. In this study, DEA was used to measure efficiency of stocks of listed companies in Bursa Malaysia in terms of the financial ratio to evaluate performance of stocks. Based on previous studies and Fuzzy Delphi Method (FDM), the most important financial ratio was selected. The results indicated that return on equity, return on assets, net profit margin, operating profit margin, earnings per share, price to earnings and debt to equity were the most important ratios. Using expert information, all the parameter were clarified as inputs and outputs. The main objectives were to identify most critical financial ratio, clarify them based on expert information and compute the relative efficiency scores of stocks as well as rank them in the construction industry and material completely. The methods of analysis using Alirezaee and Afsharian's model were employed in this study, where the originality of Charnes, Cooper and Rhodes (CCR) with the assumption of Constant Return to Scale (CSR) still holds. This method of ranking relative efficiency of decision making units (DMUs) was value-added by the Balance Index. The interested data was made for year 2015 and the population of the research includes accepted companies in stock markets in the construction industry and material (63 companies). According to the ranking, the proposed model can rank completely for 63 companies using selected financial ratio.

UR - http://www.scopus.com/inward/record.url?scp=85030171053&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85030171053&partnerID=8YFLogxK

U2 - 10.1088/1742-6596/892/1/012010

DO - 10.1088/1742-6596/892/1/012010

M3 - Article

VL - 892

JO - Journal of Physics: Conference Series

JF - Journal of Physics: Conference Series

SN - 1742-6588

IS - 1

M1 - 012010

ER -