Application of DEA method in measuring managerial ability

Research on managerial ability is active recently, and it extends to associate with many disciplines. Quantifying managerial ability is the central concern to many studies on this topic. This project, based on more than one thousand companies listed in Shanghai and Shenzhen Stock Exchange by 2008, q...

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Bibliographic Details
Main Authors: Zhao, Wen, Zhong, Hua, Ding, Tianyi
Other Authors: Li Zhi-Feng, Michael
Format: Final Year Project
Language:English
Published: 2010
Subjects:
Online Access:http://hdl.handle.net/10356/21199
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Institution: Nanyang Technological University
Language: English
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Summary:Research on managerial ability is active recently, and it extends to associate with many disciplines. Quantifying managerial ability is the central concern to many studies on this topic. This project, based on more than one thousand companies listed in Shanghai and Shenzhen Stock Exchange by 2008, quantifies the firm efficiency and managerial ability of China companies using DEA method. This research shows that DEA score is better than traditional measures in term of providing more constructive information about managerial ability. Via DEA score, this paper finds that there is an increasing tendency of firm efficiency across all industries starting from 1996; managerial efficiency could be used to predict stocks’ future performance; ownership structure is found to possibly affect the managerial efficiency as well.