%0 Journal Article
%T An Examination of Very Low Efficiency Scores in Data Envelopment Analysis in the Pension Funds Industry
%A Maryam Badrizadeh
%A Joseph C. Paradi
%J Journal of Service Science and Management
%P 71-88
%@ 1940-9907
%D 2022
%I Scientific Research Publishing
%R 10.4236/jssm.2022.152006
%X Data Envelopment Analysis (DEA) is a powerful
analytical tool that is considered as one of the most useful techniques to
measure the efficiency of Decision Making Units (DMUs) in certain industry
segments. However, there is a scarcity of<span> reported use to assess pension fundsĄŻ performance due to the complexities of
such funds. The few papers that can be found in literature do not consider the
main characteristics of pension funds such as uncontrollable vari</span><span>ables for managers, regulations, and fundsĄŻ status
(fully funded/underfunded </span><span>pension
plans). Regulations affect such investment vehicles in many ways</span> from
investment strategy, tax status, reporting requirements and others. Also, as
the by-product of our past research in this field the authors ran into some
unexpected outcomes where some funds had achieved an extremely low effi<span>ciency score. This is very highly unusual and
invited additional research.</span> There are very few papers in the literature
on extremely low efficiency scores, and there is a paucity of cogent
explanations on why this is the case. Therefore, while evaluating the pension
fundsĄŻ performance through DEA we worked on this problem in some detail to
uncover the reason(s) for such low minimum efficiency scores for pension funds.
We found that the presence of very low efficiency scores phenomena is not
uncommon in pension funds industry but is in other industry studies.
%K Data Envelopment Analysis (DEA)
%K Private Pension Funds
%K Government Regulations
%K Low Efficiency Score
%K Categorical DMUs
%K Uncontrollable Variables
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=116633