Food and beverage efficiency and its relation to stock returns: A study on the selected ASEAN countries

Productive efficiency refers to technical efficiency which is the ability of maximizing output given a level of input or minimizing input given the output. On the other hand, profit efficiency refers to allocative efficiency which is the ability of producing maximum output at minimized cost. These two efficiencies were combined to obtain the total efficiency for each decision making unit. While there are different tools such as the financial ratios accounting method in determining the fluctuation of stock returns, efficiency may be a better measure since it accounts for multiple inputs and multiple outputs. These figures are used as a determinant for stock returns by employing fixed effects model. The study determined that there is a significant relationship of efficiency and stock returns and efficiency are considered as the best determinants