Measuring Long Term Superior Performance: The UK's Long-Term Superior Performers 1984-2003
Long Range Planning, Vol. 42, No. 3, pp. 390-413, June 2009
44 Pages Posted: 19 Sep 2008 Last revised: 12 Nov 2015
Date Written: September 19, 2008
This article examines the issue of determining long-term sustained superior financial performance. We demonstrate that the technique of frontier analysis is a robust and theoretically consistent way to identify relative performance. We show how our approach, addresses the three critical issues in the measurement of performance: balancing short-term and long-term performance, capturing the multidimensional nature of performance, and finding the right peer comparators. We apply the technique to two common types of performance rankings: single year performance within an industry (oil) and multi-year performance across industries and years (215 publicly-listed UK companies, in 38 industries over 20 years).
Keywords: Superior Performance, Frontier Analysis
JEL Classification: C4, D4, L1, M1
Suggested Citation: Suggested Citation