114 Int. J. Financial Services Management, Vol. 4, No. 2, 2010
Copyright © 2010 Inderscience Enterprises Ltd.
An aggregate measure of financial ratios using
a multiplicative DEA model
Ali Emrouznejad*
Aston Business School,
Aston University,
Birmingham, UK
Email: a.emrouznejad@aston.ac.uk
*Corresponding author
Emilyn Cabanda
Global Leadership & Entrepreneurship,
Regent University,
Virginia Beach, VA, USA
Email: ecabanda@regent.edu
Abstract: This paper examines the problems in the definition of the General
Non-Parametric Corporate Performance (GNCP) and introduces a multiplicative
linear programming as an alternative model for corporate performance. We
verified and tested a statistically significant difference between the two models
based on the application of 27 UK industries using six performance ratios. Our
new model is found to be a more robust performance model than the previous
standard Data Envelopment Analysis (DEA) model.
Keywords: DEA; data envelopment analysis; financial ratio; GNCP; general
non-parametric corporate performance; MNCP; multiplicative non-parametric
corporate performance.
Reference to this paper should be made as follows: Emrouznejad, A. and
Cabanda, E. (2010) ‘An aggregate measure of financial ratios using a
multiplicative DEA model’, Int. J. Financial Services Management, Vol. 4,
No. 2, pp.114–126.
Biographical notes: Ali Emrouznejad is a Senior Lecturer of Operational
Research Group at Aston University, UK. His areas of research interest include
performance measurement and management, efficiency and productivity
analysis as well as data mining. He acted as Guest Editor of special issues in a
number of journals including Journal of Operational Research Society and
Annals of Operations Research in data envelopment analysis. He is a member
of the Operational Research Society of UK, Secretary of Midland Operational
Research Society, and co-founder of Performance Improvement Management
Software (DEA-PIMsoft).
Emilyn Cabanda is an Associate Professor of Operations at the School of
Global Leadership & Entrepreneurship, Regent University, USA. She also
served as a Visiting Professor at Yokohama National University (2006) and
International Christian University (2007) in Japan. She also taught in the
Graduate School at the University of Santo Tomas in the Philippines. She has