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An allocation Malmquist index with an application in the China securities industry

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Abstract

This paper proposes an allocation Malmquist index which is inspired by the work on the non-parametric cost Malmquist index. We first show that how to decompose the cost Malmquist index into the input-oriented Malmquist index and the allocation Malmquist index. An application in corporate management of the China securities industry with the panel data set of 40 securities companies during the period 2005–2011 shows the practicality of the propose model.

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Notes

  1. The term of ‘allocation-technical change (ATC)’ in this paper was called the term of ‘price effect (PE)’ by Maniadakis and Thanassoulis (2004). It was also discussed, and a suggestion that ‘one may view this term as AEC at industry rather than at firm level’ was provided by Maniadakis and Thanassoulis (2004).

  2. The wrong printing of w t x t+1 and w t+1 x t+1 in Fig. 2 given by Maniadakis and Thanassoulis (2004) are revised in Fig. 1 of this paper.

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Acknowledgments

This work is financially supported by 211 Project for the Southwestern University of Finance and Economics (Phase 3), Chengdu, China. The authors would like to thank Mr. Guangdong Sun and Miss Jing He for assistant work of collecting the data. We also would like to thank to anonymous reviewers for their insightful comments and suggestions, as results the paper has been improved substantially.

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Correspondence to Ali Emrouznejad.

Appendices

Appendix 1

See Table 6.

Table 6 The average values of inputs, outputs and price indexes from 2005 to 2011

Appendix 2

See Table 7.

Table 7 The OE, TE and AE of the 40 companies in 2010 and 2011

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Zhu, N., Liu, Y., Emrouznejad, A. et al. An allocation Malmquist index with an application in the China securities industry. Oper Res Int J 17, 669–691 (2017). https://doi.org/10.1007/s12351-016-0249-6

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  • DOI: https://doi.org/10.1007/s12351-016-0249-6

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