Quality Analysis and Key Factor Research in Japan's Economic Growth Based on Factor Analysis

Abstract

Factor analysis is suitable for the conditions of complex correlation, large sample size, many influencing factors, and many selected indicators; able to conduct research on a variety of subjects; and can better apply multivariate statistical methods to the evaluation of financial performance. Among other common methods of evaluating financial performance, factor analysis methods can reduce dimensionality and simplify data basically design weights. Factor analysis can reduce the dimensionality of data even with large sample sizes. It avoids a lot of complicated calculations, reduces the difficulty of calculation, and solves the problem of overlapping factor information, reflecting the advantages of multivariate statistics. Based on the factor analysis method, this study analyzes the quality analysis and key factors in Japan’s economic growth: (1) integrity principle residents’ financial risk is composed of multiple factors, not only unilateral factors but also the following factors: determine the influencing factors, select indicators, and identify risks and potential hazards. Financial risk itself is comprehensive, and the assessment of risk arising from a single factor is less important. (2) The requirements for the selected financial indicators are that the unit and order of magnitude should not only be accurate but also consistent, the financial information reflected by the selected financial indicators should be direct and clear, and financial data should be obtained in multiple ways, through annual reports and the Internet, to collect financial data. The analysis of financial performance based on scientific principles can show the current operating conditions, so the selection of financial indicators must be true, effective, and objective, so as to correctly reflect the real situation, and it is beneficial to combine the analysis results and carry out the following steps. (3) Financial risks may arise in the process of financing or in the process of investment. Financial risk in a broad sense is more in line with the characteristics of risk, and it arises in every link related to financial activities. The analysis is carried out in terms of financial risk in a broad sense. It can be seen that the economic quality scores were higher in 2011 and 2017. (4) Use several representative factors to replace the original variables for analysis, and explain the problems existing in the Japanese economy according to the results. The results show that the key factors of economic growth include gross national product, inflation, employment rate, and the balance of payments.