Abstract

This paper is an analysis of performance measurement in some of Taiwan's electronic companies. Most previous studies concerning company performance measurement focus merely on operational efficiency. Operational effectiveness, however, which might directly influence the survival of a company, is usually ignored. This paper constructs a conceptual framework, based on the Financial Statement Analysis (FSA), to define the meaning of performance. Also, this paper presents a study, which uses an innovative two-stage Data Envelopment Analysis (DEA) model that separates efficiency and effectiveness to evaluate the performance of 59 listed corporations of the electronic industry in Taiwan. The empirical results indicate that a company with a better efficiency does not always have better effectiveness. There is no apparent correlation between these two indicators.

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