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http://dx.doi.org/10.9723/jksiis.2020.25.6.095

Analyzing the Operational Efficiency of South Korea Wholesalers and Retailers during COVID-19 period (Q1 to Q2 2020)  

Kim, Gilwhan (계명대학교 경영학과)
Publication Information
Journal of Korea Society of Industrial Information Systems / v.25, no.6, 2020 , pp. 95-107 More about this Journal
Abstract
We analyze the performance of South Korea wholesalers and retailers during the period when COVID-19 emerged and began to spread in South Korea. Specifically, we choose operational efficiency as a proxy variable for reflecting corporate performance and apply stochastic frontier analysis for estimating operational efficiency. Importantly, in order to examine the impact of the COVID-19 period (Q1 to Q2 2020) on operational efficiency, we consider the quarterly fixed effect corresponding to the COVID-19 period. Our findings include: (ⅰ) the average level of operational ffficiency is approximately 0.7138 during the analysis period (Q1 2019 to Q2 2020); (ⅱ) the fixed effect of the COVID-19 period on operational efficiency is not significant; and (ⅲ) operational efficiency is positively correlated with the scale of the company. Moreover, from an academic perspective, we make a contribution by examining the relationship between the operational efficiency as a firm-level variable and the COVID-19 period as a macroeconomic variable.
Keywords
COVID-19; Operational efficiency; Stochastic frontier analysis; Quarterly fixed effect; Wholesalers; Retailers;
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