A Study on the Characteristic of The Listed Taiwan Enterprise in Financial Crisis

• Main Authors: Wu Wender, 吳文德
• Other Authors: Dr.Lin Ying-Shing
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/89186384598123632754

碩士 === 國立高雄第一科技大學 === 財務管理系 === 89 === This study adopts Discriminant analysis to distinguish the financial characteristic of normal enterprise from those of crisis companies. The research result shows that liability ratio has the highest discriminant power, followed by stockholders’ equity ratio and total assets return ratio . A high discriminant liability ratio reveals that the greater possibility a company runs into financial crises . This research also use Simultaneous estimation and Stepwise estimation statistical method to establish discriminant function and its coefficients. The hit ratio shows that the accuracy using Simultaneous estimation is 82.5% one year before financial crisis, 76.2%two years before financial crisis, and 69.0% three years before financial crisis. The accuracy of function coefficients in Stepwise estimation is 78.6% one year before financial crisis, 68.3% two years before financial crisis, and 66.7% three years before financial crisis. Thailands’ 1997 financial crises caused a chaotic chain reaction in many countries. Most listed companies and business groups in Taiwan were affected by the crisis and had a series event of financial distress, which caused domestic stock market to tumble and investors to lose much of their fortune. Furthermore, financial crises destabilized the countrys’ finance, pushing financial institutions to the brink of bankruptcy with delayed interest payment and bad loan rising. All the research sample of 42 companies in financial distress, had the following similarity characteristics. Financial crises in most of the distress companies did not rise from its domestic business management; rather, the crises were due to company managers’ illegal activities of cross shareholding, misappropriating of public funds and draining of company assets. The result of these unlawful actions led to high liabilities, insolvent circulation of operation funds and, finally, the collapse of the enterprises themselves.