Is profitability a good proxy for efficiency? Evidence from the subsector of tour operators

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F71226401%3A_____%2F17%3AN0008402" target="_blank" >RIV/71226401:_____/17:N0008402 - isvavai.cz</a>

Výsledek na webu

<a href="http://nho.econ.muni.cz/17-2017/4-2017/profitability-good-proxy-efficiency-evidence-subsector-tour-operators" target="_blank" >http://nho.econ.muni.cz/17-2017/4-2017/profitability-good-proxy-efficiency-evidence-subsector-tour-operators</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1515/revecp-2017-0022" target="_blank" >10.1515/revecp-2017-0022</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Is profitability a good proxy for efficiency? Evidence from the subsector of tour operators

Popis výsledku v původním jazyce

The goal of the paper is to evaluate the economic efficiency of tour operators in the Czech Republic in the period 2007-2014 using data envelopment analysis (DEA) models and prove the link between economic efficiency and profitability and to find out if profitability is a good proxy for economic efficiency. Data was exported from the database Albertina CZ Gold Edition. We calculated the efficiency score using CCR (Charnes, Cooper and Rhodes) and BCC (Banker, Charnes and Cooper) models based on 3 inputs and 1 output. In the years 2007 to 2010, the efficiency score of almost all the companies was higher than 0.5; however, in years since 2011, we revealed significant differences in the efficiency of individual firms and only about 40 percent of tour operators achieved an efficiency score higher than 0.5. Using Pearson and Spearman correlation coefficients, our findings show that, in the case of the Czech tour operator market, profitability ratios do not correspond with firm efficiency. Profitability ratios are not a good proxy for economic efficiency and should not be used as the only firm criterion of performance.

Název v anglickém jazyce

Is profitability a good proxy for efficiency? Evidence from the subsector of tour operators

Popis výsledku anglicky

The goal of the paper is to evaluate the economic efficiency of tour operators in the Czech Republic in the period 2007-2014 using data envelopment analysis (DEA) models and prove the link between economic efficiency and profitability and to find out if profitability is a good proxy for economic efficiency. Data was exported from the database Albertina CZ Gold Edition. We calculated the efficiency score using CCR (Charnes, Cooper and Rhodes) and BCC (Banker, Charnes and Cooper) models based on 3 inputs and 1 output. In the years 2007 to 2010, the efficiency score of almost all the companies was higher than 0.5; however, in years since 2011, we revealed significant differences in the efficiency of individual firms and only about 40 percent of tour operators achieved an efficiency score higher than 0.5. Using Pearson and Spearman correlation coefficients, our findings show that, in the case of the Czech tour operator market, profitability ratios do not correspond with firm efficiency. Profitability ratios are not a good proxy for economic efficiency and should not be used as the only firm criterion of performance.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Review of Economic Perspectives

ISSN

1213-2446

e-ISSN

1804-1663

Svazek periodika

17

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

21

Strana od-do

425-440

Kód UT WoS článku

000419010200005

EID výsledku v databázi Scopus

2-s2.0-85045855126