| Summary: | 碩士 === 東吳大學 === 會計學系 === 97 === This paper adopts Data Envelopment Analysis method (DEA) to establish an empirical model based on the information obtained from Taiwan’s top 20 pharmaceutical companies in sales of year 2006. In the first phase, DEA method is applied to estimate the technical efficiency, pure technical efficiency and scale efficiency of the 20 pharmaceutical companies above for the period from 2004 to 2006. In the second phase, for those inefficient companies, directions and the scale of improvements are proposed based on the differential variable analysis, and the comprehensive analysis is also applied to each company. In the third phase, the correlation of the technical efficiency index and the rate of return on equity (ROE) are studied in a quadrant chart and the key factors of the benchmark companies’success are introduced.
The empirical results are summarized as follows：
(1)From the CCR and BCC model, I conclude that the technical efficiency, pure technical efficiency and scale efficiency of these 20 pharmaceutical companies are in the high level and accelerating during the period from 2004 to 2006.
(2)Based on the differential variable analysis, directions and the scale of improvement are proposed for those inefficient companies.
(3)Through the comprehensive analysis, I conclude that efficiency or effectiveness bears low relation to market share. As for the 20 pharmaceutical companies, all are in the black. However, regardless of scale, effectiveness or efficiency, each of them still has its potential problems to overcome.
(4)In the quadrant chart of ROE and CCR ranking, the 20 pharmaceutical companies are divided into four areas: Companies in AreaⅠare progressive growing type, and companies in AreaⅡ are potential type. Companies in AreaⅠand AreaⅡ are worth for a long-term hold because their stocks bear dividend yields and capital gain. Companies in AreaⅢ are risk-taking type. Companies in Area Ⅳ are meager type.
(5) Johnson & Johnson and Abbott are the two benchmark companies in AreaⅠ. Johnson & Johnson perennially wins kudos for its strong and deep management, a culture that focuses on long-term business objectives, and attentiveness to generating shareholder value. The key factors of its success are being broadly based in three diverse segments of human health care, obeying the Credo as the strategic foundation, adopting the highly decentralized management approach, and implementing the Process Excellent plan. Abbott is known for its steady financial control ability. The key factors of its success are the diverse business, the successful reform, the disciplined culture and the innovation spirit.
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