Title: Using grey relation analysis and TOPSIS to evaluate the financial performance of Taiwan's TFT-LCD industry

Authors: Chuang-Min Chao; Jinn-Der Lee; Wei-San Wu

Addresses: Department of Business Management, National Taipei University of Technology, 1, Sec. 3, Chung-Hsiao E. Rd., Taipei 10608, Taiwan ' Graduate Institute of Industrial and Business Management, National Taipei University of Technology, 1, Sec. 3, Chung-Hsiao E. Rd., Taipei 10608, Taiwan ' Deloitte & Touche Global Services Limited, 27th floor, Long Bon World Trade Building, 218 Taiwan Boulevard, Sec. 2, West District, Taichung 40354, Taiwan

Abstract: This study adopted public information and ratios commonly used in financial performance analysis as the basis for selecting indicators. We applied grey relation analysis to classify the indicators with high relationship grades as a set, and we selected and simplified representative indicators to provide proper financial ratios for the evaluation of attribute sets and to avoid favouritism or negligence. Finally, we used the technique for order preference by similarity to ideal solution (TOPSIS) to determine performance order, as well as analyse the financial characteristics and operating advantages and disadvantages of the four largest TFT-LCD panel makers in Taiwan from 2005 to 2007, and to provide a reference for performance improvement. Suggestions are provided for improvement, and performance factors are explored so as to provide references for future decision-making.

Keywords: financial performance; grey relational analysis; GRA; TOPSIS method; TFT-LCD industry; decision sciences; Taiwan; TFT-LCD panels; thin film transistors; liquid crystal displays; LCDs; TFT.

DOI: 10.1504/IJADS.2015.066560

International Journal of Applied Decision Sciences, 2015 Vol.8 No.1, pp.83 - 108

Available online: 24 Dec 2014 *

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