Research On The Performance Evaluation Method And Application Of Non-homogeneous Decision Making Units With Undesirable Outputs

Performance evaluation plays an important role in the field of decision science.It shows great significance in two aspects.One is detecting the problems existed in the production of the evaluated objects.The other is providing improvement measures in a targeted way.Data envelopment analysis,which is capable of evaluating multiple-input to multiple-output decision making units,has made rapid development in the field of performance evaluation.However,the traditional data envelopment analysis model cannot evaluate non-homogeneous decision making units with undesirable outputs.In view of this problem,we adopt the combination of theoretical modeling and empirical analysis,which makes the research meaningful both in theoretical and practical aspects.Firstly,the evaluating methods for decision making units with undesirable outputs and for non-homogeneous decision making units are summarized in the literature review,respectively.Secondly,we assume that the internal structure of decision making units are known.Then the non-homogeneous decision making units with different kinds of activities are grouped.Hence,the decision making units in the same group are homogeneous,but the decision making units from different groups are non-homogeneous.Subsequently,based on the production possible set,three methods are applied to construct the performance evaluation models of non-homogeneous decision making units with undesirable outputs.They are treating the undesirable outputs as inputs,directional distance function method and slacks-based measurement.Finally,the empirical research is about evaluating financial holding companies using slacks-based measurement.15 financial holding companies are selected as the research samples.The financial holding companies are assumed to be engaged in four kinds of activities,which are banks,securities,insurances and others,respectively.The input and output indicators of various activities are selected accordingly.The results show that the overall performance of central and local financial holding companies is better than that of non-central and local financial holding companies.And non-asset management company of central and local financial holding company performs better than that of the four asset management companies.