This paper investigates the productivity of the 1000 largest companies in Taiwan - 500 manufacturing and 500 service. For the 523 companies with available data, their average productivity is 1.0845, indicating that the total value of the outputs produced by these companies is greater than that of the inputs consumed. However, there are still approximately a quarter of the companies whose productivity is smaller than 1. The service industry is slightly higher than the manufacturing industry. This paper also investigates the relationship between productivity and profitability. Overall, the results show that profitability increases with productivity. A regression analysis indicates that, due to the effect of income tax, the slope of the regression line for companies with positive profitability is less than that for those with negative profitability. Based on the relationship between profitability and productivity, a company is able to predict its net profit from productivity.
All Science Journal Classification (ASJC) codes
- Control and Systems Engineering
- Industrial and Manufacturing Engineering