TY - JOUR
T1 - A Context-dependent Efficiency Evaluation of Japanese Securities Firms
AU - Hu, Jin-Li
PY - 2020/7
Y1 - 2020/7
N2 - This research adopts context-dependent data envelopment analysis (CD-DEA) proposed by Seiford and Zhu (2003) to compute the efficiencies of Japan’s 23 securities companies during 2010-2015 and discusses whether or not online securities firms are relatively more efficient. We use three inputs and one output to compute the efficiency scores and divide a set of DMUs into different levels of efficiency frontiers, constructing several levels of efficiency frontiers in order to provide the inefficient securities firms with achievable targets and to present sub-targets as role models in management practice. Online securities firms concentrating on the brokerage business with lower costs are stable on levels 1 and 2 for six years. However, quasi-major and mid-ranked securities firms operating counter services in local areas show a downward trend in their efficiency over this period. On the other hand, the major securities firms and securities firms affiliated with major banks managing diversified businesses (including retail and wholesale) move up and down in the middle efficiency levels. The empirical results show that online securities firms are more efficient than other types of securities firms in Japan, and that the middle-ranked regional securities firms reside at the lowest efficiency level.
AB - This research adopts context-dependent data envelopment analysis (CD-DEA) proposed by Seiford and Zhu (2003) to compute the efficiencies of Japan’s 23 securities companies during 2010-2015 and discusses whether or not online securities firms are relatively more efficient. We use three inputs and one output to compute the efficiency scores and divide a set of DMUs into different levels of efficiency frontiers, constructing several levels of efficiency frontiers in order to provide the inefficient securities firms with achievable targets and to present sub-targets as role models in management practice. Online securities firms concentrating on the brokerage business with lower costs are stable on levels 1 and 2 for six years. However, quasi-major and mid-ranked securities firms operating counter services in local areas show a downward trend in their efficiency over this period. On the other hand, the major securities firms and securities firms affiliated with major banks managing diversified businesses (including retail and wholesale) move up and down in the middle efficiency levels. The empirical results show that online securities firms are more efficient than other types of securities firms in Japan, and that the middle-ranked regional securities firms reside at the lowest efficiency level.
M3 - Article
SN - 1819-0197
VL - 16
SP - 101
EP - 123
JO - Journal of Economics and Management
JF - Journal of Economics and Management
IS - 2
ER -