Evaluations of Financial Performance Indicators Based on Factor Analysis in Automotive

  • Jana Hornungová Department of Economics, Faculty of Business and Management, Brno University of Technology, CZ-61200 Brno, Kolejní 2906/4, Czech Republic
  • František Milichovský Department of Management, Faculty of Business and Management, Brno University of Technology, CZ-61200 Brno, Kolejní 2906/4, Czech Republic

Abstract

The automotive industry is one of the most significant contributors to the economy of the European Union. This industry employs the largest number highly skilled labors and is a key driver of Europe’s innovation and knowledge so it is an interesting area for research work. Data from 422 subjects in four parts of Europe (include twenty-five countries) have been analyzed. Authors used the factor analysis to eliminate information duplication and reduce dimensionality. At the same time, Pearson’s chi-square test was used to find possible dependencies between observed factors and company size and region of the company. The research brings the conclusion that an alternative hypothesis is applied – all four defined connection between observed indexes and corporate size and region reach accurate values and there is confirmed dependency between them. At the end of the paper, the corresponding map was constructed for graphical representation of both row and column categories and variables. Western companies are at the top of the performance level. Vice versa, southern companies incline to the first quartile, what means they are not focused on performance measurement. The research is focused on the area of performance in the automotive industry in Europe region during last five years. The main aim of this paper is to find key indicators in grouped factors in the field of financial performance of automotive companies because performance is a crucial issue for all individuals and organizations.

Keywords: automotive, financial performance indicators, factor analysis, the correspondence map
Published online
2019-01-28
How to Cite
Hornungová, J. and Milichovský, F. (2019) “Evaluations of Financial Performance Indicators Based on Factor Analysis in Automotive”, Periodica Polytechnica Social and Management Sciences, 27(1), pp. 26-36. doi: https://doi.org/10.3311/PPso.11328.
Section
Articles