Empirical Assessment of Manufacturing Companies Efficiency in Nigeria:Data Envelopment Analysis (DEA) Approach
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Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
Research Journal of Finance and Accounting
Abstract
This study dwells on data envelopment analysis and industry analysis. The study analyzed the technical efficiency
of twenty (20) selected manufacturing companies for the period 2015 to 2016 using input and output oriented data
envelopment analysis (DEA) approach. Findings arising from the study indicate that 35% of the quoted sampled
manufacturing firms in Nigeria were scale efficient while 65% were scale inefficient in the period observed. Thirty
percent (30%) of the manufacturing companies on the basis of constant return to scale (CRS) were technically
efficient while 70% of them were technically inefficient in the period observed. Forty percent (40%) of the
companies in terms of variable return to scale (VRS) were technically efficient while 60% were not technically
efficient in the context of variable return to scale. The study concluded that manufacturing firms in Nigeria are not
optimally performing with input and output mix of variables. It is therefore re
Description
Staff Publication
Keywords
Technical efficiency,, data envelopment analysis,, firm performance
Citation
Fapohunda, F.M., Ogbeide, S., & Igbinigie, O. (2017). Empirical Assessment of Manufacturing Companies Efficiency in Nigeria:Data Envelopment Analysis (DEA) Approach. Research Journal of Finance and Accounting, 8, 137-147.