Data envelopment analysis and an application in stocks selection

The intense competition environment nowadays compels company administrators, as decision-makers, to take managerial decisions on using the company all their sources in the most efficient way. Whether these sources have been used efficiently or not makes administrators take the relative efficiency of other competition companies, which give similar outputs with similar inputs, into account and calculate it.The present study analyzed the non-parametric method, Data Envelopment Analysis (DEA), which is used in calculating relative efficiency of decision making units in multi-input and multi-output production process. With this method, the relative efficiency of stocks has been calculated by using financial ratios input and output variables which are the indicators of the companies in IMKB 100 stock index.