An Empirical Study Exploring Relationship between Capital Change and Financial Performance of Taiwan Listed Companies in IC Manufacturing and PC Industries

• Main Authors: Jack M.F. Peng, 彭茂烽
• Other Authors: Po-Young Chu
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/27040163228468596646

碩士 === 國立交通大學 === 經營管理研究所 === 87 === Taiwan''s IC manufacturing and PC industries have enlarged their shares of the most important and fast growth electronic industries in Taiwan manufacturing sector for the past decade. However very few studies have considerde such a contingency by separating Taiwan''s electornic industries into different sub group in conducting industrial dynamic, financial behavior and resultant financial performance. In the study we first attempt to explore the defferent relatioship between capital changea and their lagging financial impacts by talking industrial contingency (separating IC manufacturing and PC industries) into account. Subsequently we investigate how the natural of these two industries varies and financial behavior/policy differs. Statistically we adopt the "Spearman''s Rank correlation coefficient" and "Pearson Product-Moment coefficient of correlation" to test the hypothesis that different time lags of improved financial performance resulted from capital changes do exit in IC manufacturing and PC indurtries. The different industrial natural and affected financing behavior have been confirmed by T-testing their debt ratio, operating leverage and financial leverage between these industries. The empirical results and managerial implications are summarized as follows: (1)The time lag of improved financial performance resulted form capital changes is about three to four years in IC manufacturing but less than one year in PC industry. (2)The positive lagging effect from capital changes in IC manufacturing is most significant in the fifth year after its corresponding capital changes. However, the positive effect on financial performance generally last less than two years in the PC industry. (3)The longer is the lag of improved financial performance from capital changes the less is a firm''s debt ratio. The debt ratio of IC manufacturing firms is significant lower than that of PC firms. (4)The operating leverage of Taiwan IC manufacturing firms is much higher than that of PC firms. (5)The financial leverage of Taiwan IC manufactiring firms is much lower than that of PC firms. (6)As the good timing of capital expenditures and supporting long-term financing (equity and long-term debt) decisions are most critical to IC manufacturing firms, efficient working capital management particularly regarding inventory and account receivables is paramount to PC firms.