| Summary: | 碩士 === 東吳大學 === 會計學系 === 93 === Abstract
The economic environment changes rapidly. When facing the competitive pressures of globalization and thin profit, company’s operation becomes more difficult. Therefore, how to enhance the over all performance of a company, profit making ability and create the enterprise value becomes an important issue to the top management. So, my research focuses on the relationship between operation performance and enterprise value. The major research topics are expressed as three questions as follows:
1.Which performance indexes correlate to enterprise value?
2.How are these performance indexes related to enterprise value?
3.Is it better way to evaluate enterprise value by balanced scorecard which combines finance index with operation index than merely by finance index.
In accordance with the research approach, this research regards industry as the research object to find the key index which influence enterprise value. The parameter of enterprise value is the EVA; whereas, the parameters of performance are 10 indexes which was chosen from four perspectives of the balanced scorecard. Finally, the multiple regression is applied to verify significant pathway to enhance higher EVA.
Regarding the performance index, more and more enterprise managers began to change the performance management systems in recent years. Besides traditional financial index, they also add quality , customer satisfaction , innovation , and market share to performance index. The combination of operation index and financial index let them understand that efficiency of managing company resource , manpower , equipment and fund is important in order to make the new strong competitive strategy. This research applies the viewpoint of balanced scorecard to develop the relevant performance indexes.
Regarding enterprise value, there are different definition and concept of enterprise value like ROA , ROI , EPS , book value , SVA , MVA , EVA ...etc,. As far as enterprise value is concerned, EVA is the index which is not complicated but more accurate compared with traditional index. Enterprise value is focused on the economic worth and ability to run the business forever. That’s the reason why the research applies EVA for the parameter of enterprise value.
Industry of LED (Light Emitting Diode ) in Taiwan is in the second place according to global market scale and in the third place according to global competitiveness. Therefore, Taiwan’s LED industry is adopted as the research subject to develop the key performance index due to it’s outstanding achievement; meanwhile, those performance indexes can also be applied to other industries.
Conclusion:
1.Gross margin, market share, inventory turnover days, and productivity of employees have significant positive-correlation to EVA so these four indexes are the key performance indexes. I suggest that enterprises must improve the employee’s core-competence and productivity, offer low-cost, high-quality product and service to enhance EVA. Besides, some issues can be discussed from different categories such as industry , market ,competitor and company resource to upgrade enterprise value by improving profit management.
2.The 10 indexes of ROE, gross margin, cash flow sufficient ratio, revenue growth rate, market share, rate of sales return , R&D benefit index , inventory turnover , the employee’s duration of firm , employee''s productivity are the parameters of LED industry performance. They represent 4 perspectives of the balanced scorecard. The perspectives-financial, customer, internal business processes have significant positive-relation with EVA, but learning and growth perspective doesn’t have significant positive-relation. It seems that further research can be continued referring to this issue in the future.
3.Adjusted R² increases when adopting balanced scorecard rather than single perspectives. As far as regression is concerned, balanced scorecard seems to explain regression better. The evidence shows that enterprises adopting both financial index and operation index (such as quality, market share, stock turnover, productivity…,etc.,), can create enterprise''s economic worth.
|
|---|
