The Rating of Operating Performance of Domestic Auto Industry

Abstract

The financial crisis in 2007 delivered a setback to the auto industry in Taiwan. However, the domestic auto companies had adopted various contingency measures that not only overcame the economic downturns but also enhanced their operating performances. It was the perfect storm. This study focuses on the changes of operating performances by domestic auto companies in Taiwan after financial crisis and explores their operating strategies. TOPSIS Model is designed to set the criteria for choosing optimal solutions under the condition that multiple objectives need to be met. Due to the obvious characteristics shown in TOPSIS Model, corporations tend to favor its use in developing a model for operating performance appraisal. This study extracted the financial information disclosed by the listed companies and conducted appraisal. After practical verification, we found that operating performance was indeed related to the ranking orders of the analysis in rating model. In applying the rating model developed in the study, executives will be able to view a better big picture before forming solid strategies. Besides, it may provide stock investors an alternative reference in selecting stocks.