Multiple Regression Analysis of Performance Indicators in the Ceramic Industry

Abstract

The present study is a large part proposed within the PhD thesis, which has the aim of enhancing the performances of industrial enterprises with mathematical models. The main goal is to increase the competitiveness, flexibility, adaptability and reactivity of enterprises in the ceramic industry. Since the ceramic sector represents an important part in the manufacturing industry, we focused on this sector, with the aim of evaluating the development of enterprises activating in this domain. The importance of this research lies in its uniqueness and effectiveness, as the performance indicators were analyzed with multiple regression analysis, in the case of an enterprise that produces technical ceramic products. This analysis generally belongs to the multivariate methods, and it is also an explanatory method of analysis. Regression analysis describes the relationship between a dependent variable and several independent variables. The dependent variable consisted in the size of the profit, while the independent variables were the following: self-financing capacity, return on equity, degree of technical endowment, personnel cost per employee and investment per person employed. The selected variables were monitored throughout ten years. The results showed that three of the variables analyzed are very significant predictors for the magnitude of profit. We could also find significant correlations between the analyzed indicators.