The Evaluation Model of Financial Performance-An Empiricla Study of the Electronic Companies Issued Securities on Taiwan Stock Market

• Main Authors: Deng, Wun-jyun, 鄧文雋
• Other Authors: 洪僖黛
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/24908068048408442090

碩士 === 正修科技大學 === 工業工程與管理研究所 === 96 === The economic environment is characterized by rapid change and ever-increasing competition. To survive and to prosper in such an environment, business organizations must continually improve their performance. Financial performance is an important indicator to represent an organization’s operations. The strength and weakness of financial performance can not only show the results of the organization’s operations, but also indicate its growth and potential in the future. Based on the concept of data envelopment analysis, this study applies the slack-based measure model to evaluate financial performance of an organization. Seven aspects, i.e. capital structure, liquidity, cash flow management, operating efficiency, profitability, return on investment, and growth are included in the model. An example of 36 electronic companies that issued securities on the Taiwan stock market illustrates how their financial performance indicators are determined. The results show that the companies have better performances in operating efficiency, capital structure, and return on investment. In contrast, their performances of the other four aspects are worse. And there exists significant differences among the companies in each financial aspect. Besides, for investigating the strong and the weak areas in financial performances, two-stage cluster analysis is applied to classify the 36 companies. The companies are categorized into four clusters. Each cluster is characterized by different financial performances. But cash flow management, operating efficiency, and return on investment are three major aspects to classify the clusters.