Measuring Relative Efficiencies in the Shoe Industry Sector in Colombia: A DEA Approach

Cayón Fallon, E., & Sarmiento-Sabogal, J. 2011. Measuring relative efficiencies in the shoe industry sector in Colombia: a dea approach. Pensamiento y Gestión, 30: 187-205.

21 Pages Posted: 20 Aug 2009 Last revised: 6 Oct 2012

See all articles by Edgardo Cayon Fallon

Edgardo Cayon Fallon

Colegio de Estudios Superiores de Administracion

Julio Sarmiento-Sabogal

Pontificia Universidad Javeriana

Date Written: August 18, 2009

Abstract

EVA® (Economic Value Added) is a commonly used financial indicator that measures the real profitability of a firm for a specific period of time. The main concept behind EVA® is that the real profitability of the firm is a function of its cost of capital, net operational profits after taxes (NOPAT) and the invested capital in the firm (IC). Is within this context that we used Data Envelopment Analysis (DEA) to analyze the financial data from 75 companies of the Colombian Shoe Industry Sector, in order to find which input factor (NOPAT or IC) is more relevant in maximizing the EVA® of the firm. Our findings indicate that for the years 2007-2006, the most important factor for maximizing EVA® in the Colombian shoe sector was invested capital and that for the years 2005-2004 was NOPAT.

Keywords: EDA, EVA®, Efficiency

JEL Classification: G3, G30

Suggested Citation

Cayon Fallon, Edgardo and Sarmiento-Sabogal, Julio, Measuring Relative Efficiencies in the Shoe Industry Sector in Colombia: A DEA Approach (August 18, 2009). Cayón Fallon, E., & Sarmiento-Sabogal, J. 2011. Measuring relative efficiencies in the shoe industry sector in Colombia: a dea approach. Pensamiento y Gestión, 30: 187-205., Available at SSRN: https://ssrn.com/abstract=1457383 or http://dx.doi.org/10.2139/ssrn.1457383

Edgardo Cayon Fallon (Contact Author)

Colegio de Estudios Superiores de Administracion ( email )

Calle 35 No. 6-16
Bogota
Colombia

Julio Sarmiento-Sabogal

Pontificia Universidad Javeriana ( email )

Carrera 7 # 40-62 Piso 4
FCEA-Depto de Administración
Bogota, D.C. 00001
Colombia
(57-1)3208320 ext 3156 (Phone)
(57-1)3208320 ext 3169 (Fax)

HOME PAGE: http://www.javeriana.edu.co/decisiones/Julio

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
92
Abstract Views
727
rank
311,311
PlumX Metrics