Application of Data Envelopment Analysis (DEA) in financial accounting research



Accounting and Finance


This project will examine the application of DEA in financial accounting research. DEA is a linear programming technique that combines multiple performance measures into a single efficiency score without the need to assign formal weightings to those measures. Given that DEA is able to combine multiple measures into a single efficiency score, its lack of use in financial accounting studies is surprising as research designs often require consideration of multiple measurements simultaneously. This project will address this issue by producing a comprehensive literature review examining the adoption of DEA in the financial accounting research, together with an empirical study that demonstrates the ways DEA can be used to enhance research in this area.