Study on Evaluation of Asset Quality in Enterprises Based on DEA Model

Abstract

The quantity of assets, especially the quality of assets, plays a crucial role in development of enterprises. For the time being, most studies about asset quality of enterprises are limited to qualitative analysis and there are rarely studies of quantitative evaluation. DEA analysis method is one which studies whether a multiple element input and multiple output system is relatively effective. We may regard an enterprise as a system with input of asset element and output of quality benefit. This article employed a quantitative method to discuss asset quality evaluation based on DEA Model by irrationally selecting asset element input indexes and quality benefit output indexes. Then, the author analyzed applicability and merits as well as disadvantages of this method.