Evaluating Financial Performance by Combination of Layer Measurement and Super-performance Ranking Model

• Main Authors: Bo-Kai Liao, 廖柏凱
• Other Authors: Hsi-Tai Hung
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/14139509307585599357

碩士 === 正修科技大學 === 工業工程與管理研究所 === 102 === The economic environment is characterized by rapid change, high risks, and ever-increasing competition. To survive and to prosper in such an environment, business organizations must continually improve their performance. Financial performance is an important indicator to represent an organization’s operations. The strength and weakness of financial performance can not only show the status of the organization’s operations, but also indicate its potential and growth in the future. In this study, an example of 30 electronic companies that issued securities on the Taiwan stock market illustrates is selected. Six financial performance indicators, i.e. capital structure, liquidity, profitability, operating efficiency, cash flow management, and growth, including 19 financial ratios are used to represent the companies’ financial performances. Based on the concept of data envelopment analysis, this study applies layer measurement, the slack-based measure and super-efficiency ranking models to evaluate and ranking the financial performance of those 30 electronic companies. Firstly, the six financial performance indicators are measured for each firm. By applying the ranking procedure proposed in this study, the composite performance index of the six financial indicators is determined. And all firms are classified into four performance layers. Besides, the firms belonged to each layer are further ranked by their super-performance scores. The rankings of all firms are determined finally. For the firms with worse performances on lower performance layers, they can select adequate reference layer as their benchmark for improving their financial performances. The improvement targets of the six financial performance indicators could be determined by the firms on the reference set.