A research of business performance decling after going public - infomation and electionic industries in Taiwan

• Main Authors: Arthur Yeh, 葉日昇
• Other Authors: GOO, Yeong-Jia
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/84365510869414115430

碩士 === 國立中興大學 === 企業管理學系 === 87 === This study is focused on analysis of financial performance of Taiwan’s electronic companies registered in Taiwan Stock Exchange Corporation. Financial performance is evaluated based on each company’s profitability index shown in its financial annual report, which include Return On Assets (ROA), Return On Equity (ROE), Profit Margin (PM), and Earning Per Share (EPS). More, the element of possible causes on financial performance presented in the financial annual report are kept track of as variances in the research. Up to date, there are 132 public electronic companies listed on the stock market. However, most of companies are less than 3 years experience, while only 30 companies have been listed on the stock market over 3 years with all required study datum. Hence, the research is done on inspections over those 30 companies on their financial performance. 3 methods are sued to examine the companies’ management efficiency: 1) Analysis of Variance Approach (ANOVA) This approach is to observe the companies’ variances over the period of 3 years before and after their Initial Public Offerings (IPO). 2) Analysis of Regression This method is to examine the relationship between 4 dependent, ROA, ROE, PM, and EPS, and 12 independent variables. 3) Average Accounting Return This approach keeps track of companies’ average accounting return and takes the best and the worst 5 companies to compare the average ratios of their profitability index. Study Results: 1) The research has discovered that the companies’ ROE, ROA and EPS present depreciation in the first 3 years after IPO. However, there isn’t significant change on the profit margin if the rate remains 5 % lever of significance in the inspection period. 2) No evidence is found on effects of ROE, EPS, and ROA over the financial performance. Accordingly, it is said that manufacturing is the key advantage as the R&D cost ratio is no much impact. 3) Growth ratio, ROA ration and PM ration are factors to companies’ financial performance as they aid companies’ cash flow, while EPS ration and ROE ration have little impact on companies’ financial performance. 4) No cross relation is learnt between cost of human resource, number of employees, and average in bureaucratic cost. 5) Companies’ financial performance is significantly effected by Gross Growth rate and profitability index. Hence, it is recognized that financial leverage becomes an important tool in the electronic industry.