Industry performance evaluation with the use of financial ratios: An application of bootstrapped DEA

In data envelopment analysis (DEA) context financial data/ratios have been used in order to produce a unified measure of performance metric. However, several scholars have indicated that the inclusion of financial ratios create biased efficiency estimates with implications on firms' and industries' performance evaluation. By applying bootstrap techniques the paper provides an application of evaluating the performance of 23 Greek manufacturing sectors with the use of financial data. The results reveal that in the first stage of our sensitivity analysis the efficiencies obtained are biased. However, after applying the bootstrap techniques the sensitivity analysis reveals that the efficiency scores have been significantly improved. (C) 2011 Elsevier Ltd. All rights reserved.