Efficiency Evaluation and Rating of registerd brokerage firms of Tehran Stock Exchange Using data envelopment analysis (DEA)

Subject Areas : Journal of Investment Knowledge

Heidar Foroughnejad ¹ , Ghader Masoomi Khanegha ² , Manochehr Mirzaei ³

1 - Ph.D Student of Financial Management, Sama Technical and Vocational Training College, Islamic Azad University, Andisheh Branch
2 - M.A Department of Accounting, University of Isfahan, Isfahan, Iran.
3 - M.A Department of Accounting, University of Isfahan, Isfahan, Iran.

Received: 2012-04-03 Accepted : 2013-08-11 Published : 2013-08-11

Keywords: Efficiency, rating, Data Envelopment Analysis, brokers,

Abstract :

The main purpose of this study is to evaluate the efficiency and rating of registerd brokerage firms of Tehran Stock Exchange using data envelopment analysis. To do this, the rating data of 87 active brokers in Tehran Stock Exchange that have done for 1390(2012) year by securities and exchange organization, was used and broker’s efficiency was measured by using DEA-Master software. Also, efficient brokers were rated based on Anderson-Peterson method in two states of input oriented and output oriented. Results showed that, among the 87 brokers, only 44 brokers were efficient. Results also showed, brokers that have top rated by securities and exchange organization, based on data envelopment analysis techniques are not necessarily efficient. In other words, some of low rated brokers by securities and exchange organization were more efficient than top rated brokers by securities and exchange organization.