Evaluating the Efficiency of AI-Driven Technology Companies in Taiwan Through ESG Practices Using Data Envelopment Analysis (DEA)

This study examines the operational efficiency of AI-driven technology firms in Taiwan by incorporating Environmental, Social, and Governance (ESG) factors into a Data Envelopment Analysis (DEA) framework. Using quarterly data from 40 publicly listed firms between 2019 and 2024, the analysis employs the CCR DEA model to evaluate the conversion of financial and ESG-related inputs into performance outputs. Stepwise regression identifies gross margin ratio, total assets growth, and cash flow ratio as significant determinants of efficiency. Results reveal that firms with single-stage production processes and those listed on the Taiwan Stock Exchange exhibit higher efficiency levels. While ESG practices positively influence performance, their impact on efficiency is shaped by a firm's financial health and strategic approach. The findings offer valuable insights for enhancing sustainable performance and resource allocation in high-tech industries.