Evaluating the relationship between technical efficiency and the factors of corporate governance, social responsibility, and financial performance of companies
a combined approach to network data envelopment analysis and regression
DOI:
https://doi.org/10.23925/2179-3565.2025v16i2p77-93Keywords:
Technical efficiency, Corporate Governance, Social responsibility, Financial performanceAbstract
This paper utilized the network data envelopment analysis model (a mathematical technique) to calculate the technical efficiency aimed at evaluating its relationship with the factors of corporate governance, social responsibility, and financial performance of companies operating in the cement, plaster, and lime industry listed on Tehran Stock Exchange from 2013 to 2022. A two-step data analysis process was used in the research. In the first stage, the technical efficiency of companies was calculated by applying the mathematical technique of network data envelopment analysis. The second stage was focused on using statistical methods to examine the relationship of technical efficiency with the factors of corporate governance, social responsibility, and financial performance of the studied companies. In this research, the variables of the dual role of the CEO, board of directors' compensation, replacement of the CEO, audit quality, and risk management were regarded as corporate governance factors, and the variables of return on assets, Tobin’s Q, and shareholders' equity were considered as financial performance factors. The results demonstrated A significant relationship between technical efficiency and indices of return on assets, equity, the dual role of the CEO, board of directors' compensation, CEO replacement, audit quality, and social responsibility. It was found that companies' adherence to the mechanisms of corporate governance and social responsibility can improve their technical efficiency. Furthermore, these factors have the potential to enhance the company's processes and improve the performance of companies.
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