A Study of Relevant Indication for Taiwan Financial Institutes to Evaluate the Biotech Companies’ Credit Line

• Main Authors: Echo Fanchiang, 范姜秀珍
• Other Authors: Wann-Yih Wu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/48602446127594646874

碩士 === 國立成功大學 === 高階管理碩士在職專班 === 96 === I currently work for a company in the emerging biotechnology industry, “Two-Trillion and Double Star”, in Taiwan. Often, differences in opinion occurred when negotiating with the staff at various financial institutes who don’t understand or are not familiar with the biotech industry. This essay employs the Economic Value Added to evaluate the credit line of biotech companies instead of only using the traditional financial ratio to assist financial institutions to evaluate the credit line of biotech companies fairly and objectively. This essay employs descriptive statistics to summarize the central point of samples and classifies the samples into four groups. 1. The traditional credit line is high, the EVA is also high. 2. The traditional credit line is high, the EVA is low. 3. The traditional credit line is low, the EVA is high. 4. The traditional credit line is low, the EVA is also low. Group 2 and 3 are conflicting clusters. After using factors analysis method to analyze the conflicting clusters, the results show that Economic Value Added can complement the traditional financial ratio credit line evaluation which neglects the development and future of biotech companies. This essay suggests that EVA can help the traditional financial ratio credit line evaluation to evaluate the risk of financial distress. Corporation Governance can be involved in traditional evaluation by EVA, remodeling the traditional financial ratio credit line evaluation and intangible assets for credit line.