Evaluating the Efficiency of ERM in China with DEA Model

• Main Authors: ZENG, REN-QING, 曾任慶
• Other Authors: HUANG, CHIEN-MING
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/z42v73

碩士 === 東吳大學 === 國際經營與貿易學系 === 106 === This thesis evaluates the performance relative efficiency of China’s enterprises by using two stages data envelopment analysis model and puts risk as a key factor into consideration in order to capture relative efficiency of firm performance in details. The empirical data is selected from a period of 2002-2016 for fifteen years as year data and total is 737 companies and 11055 observations. In two stages DEA model, first step is using BCC input oriented model to find the efficiency of company’s decision for risk and company’s decision will reflect to firm’s asset and financial information. Next, observing the connection between risk and performance, this thesis obtains the following conclusion. The result is different with traditional financial theory which means high level risk will get high returns. The value of relatively efficiency for risk between 0.5 and 0.7 is capable of maximizing firm performance. The relative efficiency to risk plays a vital role in evaluating the relative efficiency to firm performance and the two stages DEA model could effectively enhance the connection between risk and firm performance. According to the results of DEA model, dividing our sample period into 2002-2009 and 2010-2016, the relative efficiency of risk to firm performance exactly improves in 2010-2016 in contrast to 2002-2009; this could be explained as after Asian financial crisis, corporates concentrates on enterprise risk management.