Appling the stochastic frontier approach to measure managerial efficiency in Taiwan’s telecommunications industry

• Main Authors: Lin, Chen-Yi, 林貞儀
• Other Authors: Kang, Chao-Chung
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/26699761433114059581

碩士 === 靜宜大學 === 企業管理學系 === 99 === In literatures, most of studies or workers have investigated performance, efficiency, cost structure or productivity changes by Data Envelopment Analysis (DEA), Malmquist productivity index (MPI) or Translog function approaches for many telecommunication companies in telecommunications industry; however, few prior studies dealt with cost inefficiency for telecommunications industry. Considering the uncertainty characteristic of input and output variables, this study adopts the stochastic frontiers cost function approach to measure the cost inefficiency between pre-privatization and post-privatization for Chunghwa Telecom Company (CHT); and this study also explores factors which impacted the cost inefficiency changes. The empirical study shows a significant positive relationship between fixed communications network services and cost inefficiency; that is, the cost inefficiency scores do decline when fixed communications network services is declined. On the other hand, there exists a negative relationship between non-fixed communications network services and cost inefficiency scores. It implies that cost inefficiency decrease as CHT increases the non-fixed communications network services. In addition, the findings of this study indicate that the cost inefficiency of CHT marks 44 percent in cost distribution; which means that the CHT not allocated adequately miscellaneous services over the past time. To reduce the cost inefficiency, this study suggests that the CHT should decrease the excessive investment in labor and capital variables pre-privatization and after deregulation, in response to the impact on the liberalization of the telecommunications.