Firm performance and ownership structure: Dynamic network data envelopment analysis approach

This paper applies dynamic network slacks‐based data envelopment analysis to measure financial performance based on the interrelationship among investment, financing, and dividend decisions. The empirical results show that financial performance is determined simultaneously by the efficiency of decisions, and sample firms have good performance in investment stage, but need to improve their financing and dividend policies. The proposal financial performance measure explains the multicriteria of decision‐making rather than the single financial ratios. Besides, the research contributes a novel on the significant relationship between firm's ownership structure in the form of managers, government and foreign shareholders, and the firm's financial performance.