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PAKISTANI FIRMS EFFICIENCY AN EMPIRICAL STUDY OF PAKISTAN STOCK EXCHANGE THROUGH DATA ENVELOPMENT ANALYSIS

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10 Pages : 158-174

http://dx.doi.org/10.31703/gssr.2018(III-III).10      10.31703/gssr.2018(III-III).10      Published : Sep 2018

Pakistani Firms' Efficiency: An Empirical Study of Pakistan Stock Exchange through Data Envelopment Analysis

Abstract

    This paper investigates listed firm efficiency on Pakistan Stock Exchange by using Data Envelopment Analysis (DEA). The reason for application and calculation of the DEA score is to know how much the firms are efficient in utilizing their resources to be converted into output (sales/Net Income). An optimization technique (DEA) that helps calculate efficiencies of firm’s decision making Units (DMU’s) by taking different inputs and outputs variables. This paper uses DEA in measuring efficiency of 136 Pakistani firms listed on Pakistan Stock Exchange (PSX). Using secondary data set of 136 firms for the period 2008-2017, efficiency measurements are calculated by using financial ratios and financial indicators as input and output variables. Results show that some of the firms are efficient in utilizing their available resources in an efficient way to convert it into output, while some are inconsistent in efficiently utilizing their resources (inputs) to get the desired outputs.

    Data Envelopment Analysis, Overall Technical Efficiency, NonFinancial Sectors, Pakistan Stock Exchange (PSX)

    (1) Muhammad Nisar Khan
    PhD Scholar, Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.
    (2) Adnan Ahmad
    Assistant Professor, IBL, Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.
    (3) Noor Jehan
    Assistant Professor, Department of Economics, Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.
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Cite this article

APA

    APA : Khan, M. N., Ahmad, A., & Jehan, N. (2018). Pakistani Firms' Efficiency: An Empirical Study of Pakistan Stock Exchange through Data Envelopment Analysis. Global Social Sciences Review, III(III), 158-174. https://doi.org/10.31703/gssr.2018(III-III).10

CHICAGO

    CHICAGO : Khan, Muhammad Nisar, Adnan Ahmad, and Noor Jehan. 2018. "Pakistani Firms' Efficiency: An Empirical Study of Pakistan Stock Exchange through Data Envelopment Analysis." Global Social Sciences Review, III (III): 158-174 doi: 10.31703/gssr.2018(III-III).10

HARVARD

    HARVARD : KHAN, M. N., AHMAD, A. & JEHAN, N. 2018. Pakistani Firms' Efficiency: An Empirical Study of Pakistan Stock Exchange through Data Envelopment Analysis. Global Social Sciences Review, III, 158-174.

MHRA

    MHRA : Khan, Muhammad Nisar, Adnan Ahmad, and Noor Jehan. 2018. "Pakistani Firms' Efficiency: An Empirical Study of Pakistan Stock Exchange through Data Envelopment Analysis." Global Social Sciences Review, III: 158-174

MLA

    MLA : Khan, Muhammad Nisar, Adnan Ahmad, and Noor Jehan. "Pakistani Firms' Efficiency: An Empirical Study of Pakistan Stock Exchange through Data Envelopment Analysis." Global Social Sciences Review, III.III (2018): 158-174 Print.

OXFORD

    OXFORD : Khan, Muhammad Nisar, Ahmad, Adnan, and Jehan, Noor (2018), "Pakistani Firms' Efficiency: An Empirical Study of Pakistan Stock Exchange through Data Envelopment Analysis", Global Social Sciences Review, III (III), 158-174

TURABIAN

    TURABIAN : Khan, Muhammad Nisar, Adnan Ahmad, and Noor Jehan. "Pakistani Firms' Efficiency: An Empirical Study of Pakistan Stock Exchange through Data Envelopment Analysis." Global Social Sciences Review III, no. III (2018): 158-174. https://doi.org/10.31703/gssr.2018(III-III).10