Operational performance of airlines: an extension of traditional measurementparadigms
Article Abstract:
The use of data envelopment analysis (DEA) to measure the operational performance of airlines is examined. Performance assessment for airlines with international operations poses difficulties because a large proportion of thier fleets are leased, and because the impacts of such leased assets on financial performance differ according to country-specific accountingand taxation laws. This problem may be surmounted by the use of nonfinancial data, such as available ton kilometers, instead of financing, purchasing, or sales indicators. DEA is used to compute input efficiency and output revenues which are regressed against measures of profitability. The results indicate that factors that improve passenger load also support airline profitability. Efficient airlines are shown to have operating costs less than 8 cents per revenue passenger kilometer.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Estimating risk-return relationships: an analysis of measures
Article Abstract:
It is shown that the paradox of the risk-return relationship is influenced to some degree by the choice of accounting risk and measures of return. Returns that are measured with equity/assets from end-of-period (EOP) yearly reports result to negative risk-return relationships while returns computed using beginning-of-period equity/assets produce positive associations. The negative yield of the EOP method is further emphasized when samples are divided at median returns. Using the EOP method, below-median firms experience losses and usually seem to have lower and more variable returns than above-median firms. It is also shown that the regression coefficients of EOP and BOP measures are not stable. Moreover, risk-return relationships are inversely associated to the number of firms that report mean losses.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Directional stimulus-response compatibility: a test of three alternative principles. Naive and experienced judgments of stimulus-response compatibility: implications for interface design
- Abstracts: Measuring intra-operative interference from distraction and interruption observed in the operating theatre. Toward development of a computer-based methodology for evaluating and reducing medication administration errors
- Abstracts: Reputation and performance among security analysts. Optimal leverage and aggregate investment
- Abstracts: Organizational configurations and performance: the role of statistical power in extant research. Assessment of statistical power in contemporary strategy research
- Abstracts: Explaining variance in the performance of long-term corporate blockholders. Techno-etiquette