| Summary: | 碩士 === 國立高雄第一科技大學 === 金融營運所 === 94 === ABSTRACT
This study investigates the relationship between financial
leverage operation and profitability in High-Tech industry in
Taiwan. High-Tech industries are recognized to be highly
capital-concentrated and are still financing for building more plants,
therefore operating financial leverage to increase profitability
becomes an important issue for the industry. Over the past few
decades a considerable number of studies have been made on
examines the relationship between profitability and degrees of
leverage, the negative empirical result of the financial leverage to
profitability relation. This argument would be accepted by most
people, but it leaves unanswered the question of whether the
relationship between profitability and degrees of leverage changes
in long-term? Therefore in this study we try to establish
GARCH-BEKK model in finding the mutual effect between the
iii
financial leverage and the profitability.
The empirical samples use time series data, collected from financial
report of 11 companies in the industry, dated from 1987-Q3 to
2005-Q2.Using a multivariate GARCH-BEKK model, this study
examines the relationship between profitability and degrees of
leverage. We obtain whether the character of time-varying
relationship between the financial leverage and the profitability by
analyzing the texture of conditional covariances and conditional
correlations.
Our results indicate that prior average profitability has dynamic
relationship to the next except degrees of leverage. The relationship
between profitability and degrees of leverage has time-varying
character which shows the relationship is dynamic adjustment.
The stock return was affected by the relationship between
profitability and degrees of leverage in all three industries, the
effect dependence varies in magnitude and sign across industries
and time-varying.
|
|---|
