A Micro-level Perspective of Efficiency Evaluation: the Case of V4-country Timber Companies

This paper deals with the calculation of the efficiency scores of timber companies in the V4 countries using the parametric stochastic frontier analysis method and the non-parametric data envelopment analysis method in order to verify the plausibility of both approaches. From each method, the most common model setting is selected in practice. Analyses are performed on the basis of companies' accounting (micro) data. The reliability of the models is assessed in terms of the correlation coefficient but also using information about the financial health of the company. The results of this article show that it is not appropriate to simply monitor only the returns to scale assumption. Correlation analysis shows that the non-parametric BCC model differs the most. On considering the results of companies heading for bankruptcy, the results of the non-parametric CCR model seem to be the most appropriate.