Using financial factors to investigate productivity: an empirical study in Taiwan

• Published in: Industrial management + data systems Vol. 101; no. 7; pp. 378 - 384
• Main Authors: Chen, Liang-Hsuan, Liaw, Shu-Yi, Shin Chen, Yeong
• Format: Journal Article
• Language: English
• Published: Wembley MCB UP Ltd 01.10.2001; Emerald Group Publishing Limited
• Subjects: Correlation analysis; Discriminant analysis; Earnings per share; Economics; Equity; Factor analysis; Financial management; Financial statements; Fixed assets; Fuzzy; Inventory; Investigations; Management; Manufacturers; Manufacturing; Performance evaluation; Productivity; Productivity measurement; Questionnaires; Ratios; Stock exchanges; Studies; Tax returns; Turnover; Value added; Taiwan; Productivity; Factor analysis; Management
• ISSN: 0263-5577; 1758-5783; 0263-5577
• DOI: 10.1108/EUM0000000005826

Since a firm's management performance can be evaluated in terms of financial ratios, efficient management using financial factors is proposed as the key element for upgrading a firm's productivity. Investigates productivity in terms of certain financial factors of large-scale manufacturing firms in Taiwan. First determines several influential financial factors using factor analysis. Based on these factors, employs fuzzy clustering approaches to categorize the manufacturing firms into several patterns with distinct characteristics of financial factors. Using the characteristics of productivity and financial factors for each pattern, makes two kinds of analysis, and proposes some suggestions to improve the firms' productivity.