The study for investing financial distress companies by fuzzy multi-criteria methods:listed and OTC electronic companies in Taiwan for example

• Main Author: 陳麗芳
• Other Authors: 陳昭宏
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/72686572135952700788

碩士 === 義守大學 === 管理科學研究所 === 90 === Abstract In the face of an increasingly turbulent investing environment resulting from the early 21st century’s global depression, many domestic business companies encounter operating crisis, and even suffer from many financial distresses such as check bounce, illegal security deals, and indefinite plummet of stock price. Consequently, investors are unwilling to investing the stock market, which leads to the outcome that stock price can’t appropriately reflect the company’s value. This study aims to reveal information and vitalize the financial market by way of providing investors the criteria for evaluating the stocks of financial distress companies. This study, which aimed at Taiwan’s listed electronic corporations that were in deficit more than one year, picked important criteria for evaluating investment decisions based on a wide range of relative literatures. These literatures analyze the information regarding the aspects of macroeconomics, business’s financial and non-financial factors when investors intend to invest financial distress electronic companies. After summarizing the criteria of evaluation, this study surveyed experts chosen from stock related areas. A two-stage procedure was deployed. Fuzzy Delphi was conducted by way of asking a panel of experts to rank the importance of each criterion and come up with commonly preferred criteria on the first stage. On the second stage, Fuzzy Analytic Hierarchy Process was administered to obtain the weight of each facet and criterion for the purpose of establishing a fuzzy multiple criteria model of evaluating financial distress electronic companies. In this study, the results show that when evaluating financial distress electronic companies, a total of 20 most valued criteria are decided under the facets of non-financial, financial, and macroeconomics factors. Among these three facets, the most emphasized is non-financial factor, and in this factor, ownership structure is the most critical. In financial factor, the ratio of cash flow to debt is the most valued. In macroeconomics factor, the most essential is the business cycle. While for all the 20 criteria, the ownership structure is the most highly noticed. Keywords: Financial Distress Company, Non-financial Factors, Fuzzy Delphi, Fuzzy Analytic Hierarchy Process