Nourani, MohammadKweh, Qian LongLu, Wen-MinGurrib, Ikhlaas2022-09-202022-09-20© 20222022-12Nourani, M., Kweh, Q. L., Lu, W. -., & Gurrib, I. (2022). Operational and investment efficiency of investment trust companies: Do foreign firms outperform domestic firms? Financial Innovation, 8(1). https://doi.org/10.1186/s40854-022-00382-121994730https://doi.org/10.1186/s40854-022-00382-1http://hdl.handle.net/20.500.12519/703This study examines the efficiency of investment trust companies (ITCs) from 2011 to 2020 using a meta-frontier two-stage network data envelopment analysis (DEA) based on the directional distance function (DDF). We improved the accuracy of the efficiency measurement and added a network-based ranking component to rank the top-performing entities. In the group-specific technology assessment, foreign ITCs excel in investment efficiency. Meanwhile, in the meta-technology assessment, domestic ITCs outperform foreign ITCs in terms of both investment and operational efficiencies. Group-specific technology efficiency scores were found to be lower than or equal to the meta-technology efficiency scores for both the operational and investment stages. Based on the network-based ranking approach, Yuan Ta, a domestic ITC that ranked fourth in the operational stage and first in the investment stage, can be used as a reliable benchmark. This study will enable practitioners to gain a better understanding of the performance of ITCs operating under heterogeneous technologies. © 2022, The Author(s).enCreative Commons Attribution 4.0 International (CC BY 4.0) License.Data envelopment analysisDirectional distance functionInvestment trust companiesMetafrontier two-stage networkNetwork-based rankingArticleCopyright : © 2022, The Author(s).