Related to the portfolio optimization perspective, many research has mainly focused on portfolio optimization and neglected the importance of the portfolio selection process. In addition, the condition of the growth of listed companies along with the complexity of securities further makes it increasingly challenging to choose a firm or explicitly select a stock to invest.
To fulfill the research gap, we incorporate the two-stage Data Envelopment Analysis and Slacks-based measure into a framework) to assist investors before making investment decisions. The proposed model decomposed companies’ structure into two sub-processes which are profitability and marketability. By utilizing the two-stage SBM DEA model, investors and researchers are likely to understand DMUs before decision making. Furthermore, a slacks-based measure facilitated the detection of the values of slack variables, thus enhancement the discriminant power of the model and the quality of the results.
