| Summary: | 碩士 === 國立臺灣大學 === 會計學系 === 85 === Most business rankings published by domestic journals and
institutes are based on single indicator such as net sales or
total equity. Only very few rankings were generated based on
composite indicator of managementperformance.Accordingly, this
paper attempts to construct a model that usesmultivariate
analysis to choose the composite indicator and considers
bothfinancial and non-financial variables to provide a more
thorough picture about the business performance.
Based on prior studies, this paper first applied factor analysis
on the 49variables of 270 listed companies in 1994. This
approach identified seven common factors: profitability,
size, liquidity, activity, ability of dividendspayout, cash
flows, and productivity.
Second, the variable with the largest factor loading on each
common factorwas selected as representative variable. These
seven variables are return on assets, total equity, current
ratio, total asset turnover, total number of dividends payout
years in last five years, cash flows from operating/total
liabilities, and net sales per employee.
Third, this paper tried to weigh these seven variables by using
sensitivity analysis. The final weights of variables were
decided by selectingthe weighting mix with the least difference
of ranking compared with other mixes. The selected weighting
mix of these seven variables is as follows: return on
assets, 31%; total equity, current ratio, total asset turnover,
15% each; total number of dividends payout years in last five
years, cash flows from operating/total liabilities, net sales
per employee, 8% each. Based on the variables and
their weights described above, composite indicator of
business performance was generated. This study ranked 310 listed
companies using 1995 financial and non-financial data. The final
ranking showsthat the top 10 are either electronic companies or
plastics companies.
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