The role of corporation efficiency in investment: Investors decision making

In decision making process, people always focus on the profit they can earn by the stock. Therefore, there are a bunch of factors which should be taken into account. When it comes to the concerned factors, corporation efficiency is a reasoned element. In order to figure out the difference of companies in this item, we utilize DEA (data envelopment analysis) to analyze such data. Then there is a comparison among the ranks of corporations in efficiency, profit and trading volume. However, the more profitable corporation is not as popular as we thought. The result gives us a contradiction compared to the common sense that a more effective company holds higher profit. Therefore, the conclusion of the research gives a support to a proper investment decision.