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The study reserch the influence of corporation financial factors and economic condition on opertion performance in Taiwan area. In order to get accurate study results,study the determi- nates of corporation and industry sectors'''' operation performance. Sample was drawn from the R.O.C. standard industry classification for the period 1985 to 1991, including 13 industries: vegetables oil & feed, cotton textile, wool textile, man-made fibers, man-made fiber textiles, paper & pulp, petrochemical products, rubber products, electronic & electrical, electric machinery, wire & cable, steel products and cement. 84 firms were selected. We applied regression equations to include a number of variables acting as proxies for likly determinates of operation performance such as concentration ration, firm size, industry size, firm growth, industry growth, capital structure, industry captial structure, structrure share and economic condition. We applied 1-Way ANOVA and Kruskal- Wallis test to capture the industry effect, the industry wether a factor in determinating of operation performance. The results report as follows: 1. The evidence presented here show that capital structure, firm size, firm growth and ecomnomic condition significant effect on the corporation operation performance. 2. The result presented here show that industry capital structure, industry size, industry growth significant effect on the industry operation performance. 3. Industry effect is also a factor in determinating of operation.
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