A study of the relationship between investment and financial performance

• Main Authors: Li, Wen-Chei, 李雯琪
• Other Authors: Lin, Gin-Chung
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/76073172064436424811

碩士 === 淡江大學 === 商管學院高階主管管理碩士學程 === 91 === This thesis analyzed the Taiwan Listed Company on the 31st of Dec. 1999, focus on the company investment activities and it’s relationship between the company’ performance appraisal. Financial holding companies and insurance Companies are not included in this analysis. 1.Different industries have significant effects on the investment activity. 2.Different industries have significant effects on the degree of diversification 3.Working capital has significant effect on the investment activity. 4.Free Cash-flow has significant effect on the investment activity. 5.Financial structure has significant effect on the investment activity. 6.Profitability is positively related to investment activity. Analyze Result： 1.There is no significant difference between electronic industry and non- electronic industry, when comparing the nos. of invested companies, investment ratio, the ratio of cash flow-in from investing activities over equity, the ratio of cash flow-out from investing activities over equity, and investing income ratio. 2.There is significant difference level of 0.01 between electronic industry and non-electronic industry on diversification, but non-electronic is higher than electronic on the degree of diversification. 3.The relationship between working capital and investment ratio, the ratio of cash flow-in from investing activities over equity, the ratio of cash flow-out from investing activities over equity, investing income ratio has no significant difference, but working capital and nos. of invested company, the degree of diversification has significant difference. 4.The relationship between free cash flow and nos. of invested company, investment ratio, the ratio of cash flow-in from investing activities over equity, the degree of diversification has significant difference, but investing income ratio and the ratio of cash flow-out from investing activities over equity, investing income ratio has no significant difference. 5.The relationship between debt ratio and investing income ratio, the degree of diversification has no significant difference, but between debt ratio and nos. of invested company, investment ratio, the ratio of cash flow-in from investing activities over equity, the ratio of cash flow-out from investing activities over equity has significant difference. 6.R-square is 0.0835 and F value = 5.755** , between nos. of invested company, investment ratio, investing income ratio, the ratio of cash flow-in from investing activities over equity, the ratio of cash flow-out from investing activities over equity, the degree of diversification and EPS, reached 0.01 significant level, which represent the hypothesis of regression calculation has power in explaining the relative. Especially on the reinvestment cash-outflow over the net ratio has displayed the affected on the EPS (t value = -5.2101) of ratio one over 100, and will affect EPS of $0.1146.