Evaluating top information technology firms in standard and poor's 500 index by using a multiple objective programming based data envelopment analysis

Chi-Yo Huang, Po Yen Wang, Gwo Hshiung Tzeng

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Information technology (IT) is defined as the obtainment, procedure, storage and propagation of sounding, drawing, and textual information by combining microelectronics-based computing and telecommunications. Nowadays, IT is starting to spread further from the conventional personal computer and network technologies to integrations of other fields of technology such as the use of cell phones, televisions, automobiles, etc. In other words, IT has penetrated in daily life of human beings and become one part of the whole society. The importance of IT has become momentous. Therefore, to understand the performance of efficiency and productivity of the IT firms is critical for managers as well as for personal investors. Until now, there are very few researches tried to analyze final performance of the IT firms. As a result, this research intends to use traditional Data Envelopment Analysis (DEA) CCR or BCC models to evaluate the performance of IT firms. The Decision Making Units (DMUs) on this research are chosen from IT firms in S&P 500. However, the traditional DEA models are not fair models from the aspect of improper weight derivations. Thus, this paper intends to analyze the efficiency of IT firms in S&P 500 efficiencies by using multiple objective programming (MOP) based Data Envelopment Analysis (DEA). In a MOP based DEA approach, DMUs will be evaluated based on an equal standard and the results will be evaluated more fairly. The world's leading IT firms in S&P 500 will be evaluated based on publicly available financial reports of the fiscal year 2010. In addition, the newly developed MOP can improve the traditional DEA's unfair weights problems and benchmark the efficiency of IT firms in S&P 500 correctly. In the empirical study, the MOP based DEA demonstrated that F5 Networks should be the communications equipment companies of IT worthwhile to be invested. In the future, performance evaluation results can be served as foundations for investment strategies definition.

Original languageEnglish
Title of host publicationAdvanced Research in Applied Artificial Intelligence - 25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012, Proceedings
Pages720-730
Number of pages11
DOIs
Publication statusPublished - 2012 Aug 1
Event25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012 - Dalian, China
Duration: 2012 Jun 92012 Jun 12

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume7345 LNAI
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Other

Other25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012
CountryChina
CityDalian
Period12/6/912/6/12

Fingerprint

Multiple Objective Programming
Data envelopment analysis
Data Envelopment Analysis
Computer programming
Information Technology
Information technology
Business
Standards
Decision making
Decision Making
Unfair
Unit
Personal Computer
Automobile
Television
Telecommunications
Microelectronics
Personal computers
Empirical Study
Automobiles

Keywords

  • Data Envelopment Analysis (DEA)
  • Information Technology (IT)
  • Multiple Objective Programming (MOP)
  • Performance Evaluation
  • Standard and Poor's 500 index

ASJC Scopus subject areas

  • Theoretical Computer Science
  • Computer Science(all)

Cite this

Huang, C-Y., Wang, P. Y., & Tzeng, G. H. (2012). Evaluating top information technology firms in standard and poor's 500 index by using a multiple objective programming based data envelopment analysis. In Advanced Research in Applied Artificial Intelligence - 25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012, Proceedings (pp. 720-730). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 7345 LNAI). https://doi.org/10.1007/978-3-642-31087-4_73

Evaluating top information technology firms in standard and poor's 500 index by using a multiple objective programming based data envelopment analysis. / Huang, Chi-Yo; Wang, Po Yen; Tzeng, Gwo Hshiung.

Advanced Research in Applied Artificial Intelligence - 25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012, Proceedings. 2012. p. 720-730 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 7345 LNAI).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Huang, C-Y, Wang, PY & Tzeng, GH 2012, Evaluating top information technology firms in standard and poor's 500 index by using a multiple objective programming based data envelopment analysis. in Advanced Research in Applied Artificial Intelligence - 25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012, Proceedings. Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), vol. 7345 LNAI, pp. 720-730, 25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012, Dalian, China, 12/6/9. https://doi.org/10.1007/978-3-642-31087-4_73
Huang C-Y, Wang PY, Tzeng GH. Evaluating top information technology firms in standard and poor's 500 index by using a multiple objective programming based data envelopment analysis. In Advanced Research in Applied Artificial Intelligence - 25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012, Proceedings. 2012. p. 720-730. (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)). https://doi.org/10.1007/978-3-642-31087-4_73
Huang, Chi-Yo ; Wang, Po Yen ; Tzeng, Gwo Hshiung. / Evaluating top information technology firms in standard and poor's 500 index by using a multiple objective programming based data envelopment analysis. Advanced Research in Applied Artificial Intelligence - 25th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2012, Proceedings. 2012. pp. 720-730 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)).
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