| Summary: | 碩士 === 逢甲大學 === 會計所 === 96 === Degree of operation and financial are the indexes of measuring business risk. In the past studies, Mandelker and Rhee (1984) measuring system is used to measure DOL and DFL. However, the size factor isn’t made as a consideration in Mandlker and Rhee (1984) measuring system. In our studies, in addition to improving the insufficiency of Mandlker and Rhee(1984) measuring system, we discussed the size factor in effecting DOL and DFL measurements in three ways of industry analysis- representative individual of firm, representative individual of industry and representative individual of market.
The samples of the research are taken from COMPUSTAT, having 599 public corporations and the 20-year dates. In the result, we find that using total property as the size factor and setting PDF have obvious differences between steps of industry and market. Therefore, size factor would effect the measurements of DOL and DFL. Besides, DOL and DFL in weight average and in arithmetic average have obvious differences.
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