The Relation between Inventory Information and Future Firms Performance

• Main Authors: Chia-hsiu Lee, 李佳修
• Other Authors: Chia-ling Lee
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/00071613564252935371

碩士 === 國立中正大學 === 會計與資訊科技所 === 95 === This study aims to explore the association between the inventory information in financial statements and future performance of firms. The change in percent of production added to inventory and the excess inventory are used for presenting inventory information. Furthermore, this study examines firm’s cost structure and business cycles how to affect the relationship between excess inventory holding and firm’s future performance？ The empirical result shows that change in percent of production added to inventory is a leading indicator of firm’s future performance. The excess inventory holding is negatively associated with the firm’s future performance. The firm with higher fixed cost structure has greater negative association between excess inventory holding and future performance. When economy conditions become prosperous, the negative association between firm’s excess inventory holding and future performance in expansion period is weaken. This empirical results support the hypotheses.