Ranking Organizations On The Basis of Intellectual Capital Indices By Applying DEA: A Case Study of Petrochemical Companies Listed On Tehran Stock Exchange

Abstract

DEA (Data Envelopment Analysis) is a linear programming method whose main purpose is comparing and evaluating a number of similar decision making units with different amounts of input and output. Using this method, one can rank efficient and inefficient companies and then among the efficient companies, identify the efficiency frontier. In ranking stock companies, one of the factors which have been overlooked in previous research is “Intellectual Capital" index. In this paper, based on this index, along with financial indices, the petrochemical companies listed on the stock exchange have been ranked by means of Data Envelopment Analysis method and then efficient and inefficient companies have been identified. Subsequently, employing Benchmark Approach, efficient units have been ranked. Also, to determine the importance of inputs, by applying Sensitivity Analysis, the model has been solved three times, each time removing one of the inputs and the difference between the obtained values and the values gotten from the primal model has been calculated. The results of the study show that among the 16 companies under study, 9 units have been known to be efficient and the “Intellectual Capital" index, as an input in DEA model, has a significant role in evaluating these units.