An Empirical Study on Operating Performance of Domestic Steel Industry

• Main Authors: Chen-Hung, Wu, 吳鎮鴻
• Other Authors: Po-Sheng, Ko
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/qjsqpx

碩士 === 國立高雄應用科技大學 === 財富與稅務管理研究所碩士在職專班 === 101 === ABSTRACT As the foundation of all industries, the iron and steel industry is intrinsically linked with the two primary life lines of the country: national defense and economy; its importance is self-evident. Along with the rising global market and an increasing fluctuation in raw material prices worldwide, the difficulty and risk involved in the iron and steel industry operation has significant increased, and the causal factors are becoming more diverse. As the consequence resulting from the casual factors is unknown, using financial ratios on corporate financial statements to analyze the corporate operational performance provides the managers an important guideline in management and modification. This study sourced financial data from 2001 Q1 to 2012 Q4 of listed and OTC (over-the-counter) traded steel and iron companies in Taiwan, and performed regression analysis for empirical analysis of the corporate operational performance. The analyses on the indicators of corporate operational performance, including return on equity (ROE), return on assets (ROA), and net profit after tax, reveal the following findings: 1) quick ratio, total asset turnover ratio, revenue growth ratio, growth rate of net profit after tax, and growth rate of total assets have a positive and significant relationship with the above indicators of corporate operational performance, 2) debt ratio has a negative and significant relationship with the above indicators of corporate operational performance. The results suggest that the above financial ratios could provide key information to managers on improving their corporate operational performance. In addition, as the iron and steel industry involves high capital and revenue, some financial indicators (e.g., current ratio, receivable turnover ratio, and inventory turnover ratio), which may be indicators of positive influence in other industries, may be opposite to the expected direction in the iron and steel industry, and hence, are especially mentioned herewith for explication.