earticle

영어

In this paper, We discuss successful management innovation activities through showing various techniques and examples of management innovation. Based on LG. Phillips Displays Components, We analyzed correlations between management innovation activities and financial productivity. Evidence demonstrates the following. First, in financial productivity analysis through profit index, the ratio of net profit to net sales, the ratio of operating profit to net sales, and return on asset all were increased, which affects financial returns positively. Through this result, we can infer management innovation activities make sales and management go efficiently. Second, in financial productivity analysis through safety index, the current ratio and the quick ratio consistently decreased, this affects capacity for short term repayment negatively. However, in 2002, it still shows a higher figure than the average of the manufacture industry. We infer business innovation activities affect capacity for short term repayment. On the other hand, debt ratio is higher than the average of the manufacture industry. This means, through an efficient management of debt ratio, safety of financial structure is needed. Third, in financial productivity analysis through growth index, it shows less a negative growth than the average of manufacture industry both in 2003 and 2004. Growth rate of the total assets consistently increases, which shows how long the investment activity lasts. Forth, in financial productivity analysis through activity index, total assets turnover, receivable turnover both consistently increase. It shows that business innovation activities helped corporate assets be used efficiently. The limits of this paper are as follows. We analyzed business innovation activities only with respect for the financial ratio. We couldn't quantify it with a non－financial ratio. We need to analyze the correlations between management innovation activities and financial productivity, and also non－financial productivity.