Multiplicative efficiency aggregation to evaluate Taiwanese local auditing institutions performance

Date
2022-08
Authors
Lu, Wen-Min
Kweh, Qian Long
Yang, Kai-Chu
Journal Title
Journal ISSN
Volume Title
Publisher
Springer
Abstract
This study evaluates the management efficiency and quality effectiveness of Taiwanese local auditing institutions (LAIs), whereby two outputs leave the first stage without being inputted to the second stage under the assumption of variable returns to scale. To address these considerations, this study integrates multiplicative efficiency aggregation (MEA) in a two-stage network data envelopment analysis (DEA) model into the form of second order cone programming (SOCP). Under a cone structure, our DEA findings indicate that management efficiency increased, and quality effectiveness decreased over the sample period 2013–2015. Besides, a truncated regression analysis indicates that differences in operating environments, particularly urbanization level and LAIs’ attributes, have significant impacts on the management efficiency of LAIs. The potential applications and strengths of SOCP and MEA-based two-stage network DEA in assessing the LAIs are highlighted. © 2020, Springer Science+Business Media, LLC, part of Springer Nature.
Description
This article is not available at CUD collection. The version of scholarly record of this Article is published in Annals of Operations Research (2022), available online at: https://doi.org/10.1007/s10479-020-03592-x
Keywords
Auditing institutions , Data envelopment analysis , Multiplicative efficiency aggregation , Second order cone programming , Two-stage data envelopment analysis
Citation
Lu, W. M., Kweh, Q. L., & Yang, K. C. (2022). Multiplicative efficiency aggregation to evaluate Taiwanese local auditing institutions performance. Annals of Operations Research, 315(2), 1243-1262. https://doi.org/10.1007/s10479-020-03592-x
URI
https://doi.org/10.1007/s10479-020-03592-x
 http://hdl.handle.net/20.500.12519/206
DOI
Collections
Accounting & Finance