The Comparative Study of IPO Fund-Raising Effectiveness on Small-medium Size Businesses in Taiwan

• Main Authors: Wu.Mong-Fang, 吳孟方
• Other Authors: 潘振雄
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/05113152568380001843

碩士 === 大葉大學 === 事業經營研究所 === 89 === 　　In the past several decades, small-medium size businesses contributed exceedingly towards Taiwan’s economic miracle and helped make Taiwan the model for developing countries. Initially, Taiwan held the edge of being able to produce high quality products at relatively lower cost. However, Taiwanese entrepreneurs now encounter a bottleneck due to technology innovation, which results in the shortening of product life cycle and inventory turnover. Thus, despite being a low-cost export country, Taiwan has lost its cost competitiveness against China, Southeast Asia, and other countries from WTO. Taiwan must adopt economic globalization and liberation as its mean to keep up with businesses worldwide. On the other hand, small-medium size businesses need to raise capital in order to compete for market share. 　　This study centers on the methods of raising capital and difficulties that entrepreneurs face. Lastly, it offers a viable solution for business strategies, financial planning, and government policies. 　　This study emphasizes the following six subjects: 1.The small-medium size businesses can raise capital and expand easily through IPO. 2.IPO provides a more flexible and multilateral means for business’ capitalization to adapt company strategies. 3.IPO is able to directly reduce the cost of capital. 4.IPO can adjust shareholder structure and prmote company image, which ultimately facilitates capital raising. 5.Capital induces growth in LED, one of the most competitive products in Taiwan’s optical industry. 6.Financial plans of capital usage vary due to differences in business strategies.