Operating Performance of the Tire Industry in Taiwan
| Autor: | Jia-Lun chen, 陳家倫 |
|---|---|
| Rok vydání: | 2012 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 100 Only a few papers are dedicated to study the tire industry in Taiwan. Most of them are related to the Cheng Shin Tire Company. Furthermore, most of the related papers study their strategies and factors of success, but not from an empirical point of view. Sifting through the literature, we summarize success factors of the tire industry as follows: 1. Technology Level: The tire industry requires constant research and development input to technology level and thus product quality. 2. Economy of Scale: The tire industry is quite labor and capital intensive. Companies need to have negotiating and purchasing niche against raw material suppliers and customers. Therefore, they require substantial economy of scale to lower their cost of production. 3. Brand Name Marketing: For the tire industry, retail market is far larger than car assembly market. Therefore, it is imperative to establish a good brand name and marketing channels. This study focuses on 5 tire companies listed on the Taiwan Stock Exchange. We use 110 biannual reports of those 5 companies in the period from 2001 to 2011, and study the influences of the following factors on business operational efficiency: economy of scale, research and development intensity, the degree of diversification, market concentration rate, marketing intensity, oil price and major commodity prices, natural and synthetic rubber prices, and CEPD’s Taiwan Business Indicators. We use both time series and panel data models to uncover factors that influence the operating efficiency of tire companies. Our empirical results show that high oil price and natural and synthetic rubber prices are negatively correlated with return on equity, operating margin and profit margin, while business indicators and total assets are positively correlated with them. Furthermore, marketing intensity is negatively correlated with operating margin, and the degree of diversification is positively correlated with profit margin. Other results are not statistically significant. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
| Externí odkaz: |
|