The Use of Data Envelopment Analysis in Measuring the Performance Efficiency - Evidence from Bahrain

Abstract

This study uses two models of the data envelopment analysis (DEA) to measure the performance efficiency of a sample of listed Bahraini banking and investment firms. The first model (CCR Model) which introduced by Charnes, Cooper and Rhodes (1978) was used to measure the overall technical efficiency; while to measure pure technical efficiency and scale efficiency as two components of the overall technical efficiency, the second model (BCC Model) introduced by Banker, Charnes and Cooper s model - BCC (1984) was applied. Although the use of two different models to measure performance efficiency led to different results, each model has its own characteristics and uses. Therefore, the decision maker must determine his/her needs before selecting a model to be used in the measurement of corporate performance efficiency. The main finding indicates that different models provided different results over the 2013–17 period.