The Measurement of Efficiency: A Case Study of LQ45 Companies in Indonesia
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During the five-year observation period, this study intends to assess the efficiency of LQ45 companies published between August 2021 and January 2022 during five years (2016-2020). Using Data Envelopment Analysis (DEA), this study employs the Constant Return to Scale (CRS) and Variable Return to Scale (VRS) method to assess the efficiency and productivity of an organization. According to the findings of this study, the average efficiency of each LQ45 companies in Indonesia has not yet attained maximum efficiency, and the trend varies from year to year. Variable output, including Net Income After Tax, is the primary reason for the LQ45 company's inefficiency. Other findings from this study reveal that sharia LQ45 companies are more efficient than non sharia LQ45 companies. In addition, this study evaluates the efficiency of LQ45 companies during the Covid-19 epidemic, which demonstrates a drop in efficiency as evidenced by the majority of companies having a substantial decline in output.
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