A Study On Economic Value Added of the Semiconductor Industry in Taiwan- The Case of TSMC

• Main Authors: Chun-Ren Chiu, 邱俊仁
• Other Authors: Hao-Yen Yang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/04501068966895646010

碩士 === 世新大學 === 經濟學研究所(含碩專班) === 93 === There are various understandings among scholars when it comes to the methodology of EVA for examining a company’s performance. Therefore, this research takes TSMC, a Taiwan listed company, as example to demonstrate the differences. Moreover, base on the EVA definition by Stern Stewart & Co., a finance consultant firm located at New York, to compute TSMC’s EVA from third season 1995 to second season 2004. Then compare this indicator with other traditional ones, like Return of Equity (ROE), Earning Per Share (EPS), and Return of Assets (ROA). More, try to interpret the connotation, and provide the investors to refer. In this research, independent variables are ROE, EPS, ROA, and EVA; dependent variables are stock price (TSP) and market value added (MVA). Through a series of narration statistics, relevant analysis, and regression analysis, results as follows: 1.TSMC’s EVA displays surplus on capital utilization By narration statistics, the mean average of TSMC’s was 0.2727 NTD per share in the research period, which means TSMC’s Net Operating Profit after Tax (NOPAT) is higher than the Weighted Average Capital Cost (WACC), therefore, TSMC is efficient in the capital utilization, and may earn a surplus in this part. 2.ROE represents the best indicator to demonstrate TSMC’s operating performance According to the regression analysis, ROE is highly relevant to TSP and MVA. That implies that the shareholders of TSMC make their investment decision by traditional performance indicators, especially ROE. 3.EVA is insignificant to TSMC’s performance In the relevant analysis or the regression analysis, neither the relevance between EVA and TSP nor the relevance between EVA and MVA is as close as how the scholars imagined. And, it is even inferior to the traditional indicators. It implies that shareholders of TSMC make their investment decisions by the traditional indicators.