Estimating profit efficiency among South African retail firms using stochastic frontier approach

Akinboade, Oludele Akinloye; Mokwena, Mandisa Putuma; Kinfack, Emilie Chanceline

doi:10.1080/09593960802573419

Cited by 4 publications

(5 citation statements)

References 12 publications

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“…SFA applications in mining date back to the works by Wu [7] for the measurement and technical efficiency and the investigation of causes of inefficiency in the Chinese coal industry. Other recent relevant studies are the works by Koop and Tole [8], Burhop and Lübbers [9], Akinboade et al [10], Shi [11], Shi and Grafton [12], and Syed et al [13]. Koop and Tole [8] employ Bayesian SFA to measure the environmental performance of firms in the global gold mining industry.…”

Section: Methodsmentioning

confidence: 99%

“…Burhop and Lübbers [9] evaluate the impact of cartelization and managerial incentives on the productive efficiency of German coal mining corporations. Akinboade et al [10] estimate profit efficiency in the South African mining sector by using SFA. Shi [11] examines with the aid of SFA the impact of the privatization, corporatization, and debt restructuring of China's state-owned enterprises on technical efficiency.…”

Section: Methodsmentioning

confidence: 99%

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Mine Performance Assessment by Means of Stochastic Frontier Analysis

Tsolas

2019

Mathematical Problems in Engineering

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This paper employs stochastic frontier analysis (SFA) in assessing efficiency at the mine level. An SFA model is derived using annual operational data from the Kardia Field mine of the Greek Public Power Corporation (PPC) S.A. for the 1984-2006 period and the causes of inefficiency are investigated by means of regression techniques. The proposed two-stage model can be used as a diagnostic tool to identify causes of mine inefficiency and as a tool for designing and specifying interventions to improve mine performance.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Mine Performance Assessment by Means of Stochastic Frontier Analysis

Tsolas

2019

Mathematical Problems in Engineering

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“…In order to measure technical efficiency and investigate the causes of inefficiency in the Chinese coal industry, Wu [8] used traditional SFA to measure technical efficiency and investigates the causes of inefficiency in the Chinese coal industry, and Koop and Tole [21] use environmentally adapted Bayesian SFA to measure firm environmental output in the global gold mining industry. Other recent conventional SFA studies that deal with aspects of efficiency at the industry level are the works by Burhop and Lübbers [22], Akinboade et al [23], Shi [24], Shi, and Grafton [25], and Syed et al [26]. SFA was also used in the utility sector to determine the environmental or technical efficiency of electric utilities [27,28].…”

Section: Literature Reviewmentioning

confidence: 99%

Efficiency Analysis of Lignite Mining Operations Using Production Stochastic Frontier Modeling

Tsolas

2021

Mining

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This paper proposes a stochastic frontier model for measuring both technical and environmental performance at the mine level by using a translog production function. The Kardia Field opencast lignite mine of the Greek Public Power Corporation (PPC), S.A. is the topic of the case study. Efficiency ratings are derived over a long period of time using annual operating data, and in addition, the determinants of inefficiency are established by means of the technical inefficiency effects model. In the light of the results, there is a strong correlation between technical and environmental efficiency; the results are validated by those produced by data envelopment analysis (DEA). In addition, the stripping ratio is identified as the statistically significant determinant of performance. The proposed framework could be used as an instrument to measure the efficiency of lignite mining operations and to identify the drivers of performance.

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“…, (18) where 1, is ore production rate (t/year), 2, is fixed costs (USD), 3, is revenues (USD), 4, is production costs (USD), 5, is working days (days/year), and 6, is degree of use of production capacity (%).…”

Section: Grey Information Systems and Multivariable Grey Model Gm(h N)mentioning

confidence: 99%

“…Four types of empirical tests have been performed (parametric mean differences, nonparametric Wilcoxon rank sum test, static regression panel estimation, and dynamic regression panel estimation) to estimate managerial and operational efficiency of privatized mining companies in Jordan [4]. A stochastic frontier analysis method was used to estimate profit efficiency in the South African mining sector [5]. The analytic hierarchy process (AHP) methodology was selected for ranking the efficiency of selected platinum mining methods [6].…”

Section: Introductionmentioning

confidence: 99%

Operational Efficiency Forecasting Model of an Existing Underground Mine Using Grey System Theory and Stochastic Diffusion Processes

Savić

Ostojic²,

Gligorić

et al. 2015

Mathematical Problems in Engineering

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Forecasting the operational efficiency of an existing underground mine plays an important role in strategic planning of production. Degree of Operating Leverage (DOL) is used to express the operational efficiency of production. The forecasting model should be able to involve common time horizon, taking the characteristics of the input variables that directly affect the value of DOL. Changes in the magnitude of any input variable change the value of DOL. To establish the relationship describing the way of changing we applied multivariable grey modeling. Established time sequence multivariable response formula is also used to forecast the future values of operating leverage. Operational efficiency of production is often associated with diverse sources of uncertainties. Incorporation of these uncertainties into multivariable forecasting model enables mining company to survive in today’s competitive environment. Simulation of mean reversion process and geometric Brownian motion is used to describe the stochastic diffusion nature of metal price, as a key element of revenues, and production costs, respectively. By simulating a forecasting model, we imitate its action in order to measure its response to different inputs. The final result of simulation process is the expected value of DOL for every year of defined time horizon.

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Estimating profit efficiency among South African retail firms using stochastic frontier approach

Cited by 4 publications

References 12 publications

Mine Performance Assessment by Means of Stochastic Frontier Analysis

Mine Performance Assessment by Means of Stochastic Frontier Analysis

Efficiency Analysis of Lignite Mining Operations Using Production Stochastic Frontier Modeling

Operational Efficiency Forecasting Model of an Existing Underground Mine Using Grey System Theory and Stochastic Diffusion Processes

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