How Research and Development Activities impact on Company’s Financial Indicators – Taking Listed SME from Computer Peripheral Industries in Taiwan as Examples

• Main Authors: Yuan-Di Ting, 丁元迪
• Other Authors: Sheng-Syan Chen
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/90453316801745522806

碩士 === 國立臺灣大學 === 財務金融學研究所 === 96 === In IT industry, there is a theory of ‘smiling curve’ – proposed by the founder of Acer, Stan Shih, which talks about the value added versus R&D investment, manufacture and marketing/sales investment. If R&D investment as well as marketing/sales activities can create value, how can they impact on the financial performance? How to measure the effect of those investments? Which financial indexes should we select? This research is to analyze the listed IT companies in Taiwan from Computer Peripheral Industry. The period is from Jan 2000 to Jan 2008. Those selected companies are small or middle sizes with the capital less than NT $10 billion, have been established for more than 5 years and have been profitable for over consecutive 4 years. The competitors of my company and the one I am familiar with are selected at 1st. From the research, we have found: a. Either RDI (Research and Development Intensity) or MKI (Marketing Intensity), or both, have positively correlated with financial performance indexes. b. The effect of time lag from the investment on research & development is very clear. c. In our samples, 60% of the companies have stronger correlation between RDI and financial indicators and 35% of the companies have stronger correlation between MKI and financial indicators. d. The correlation of contemporary RDI and GPR shows positive; the correlations of contemporary RDI and OIR and contemporary RDI and ROA are unclear. e. The effect of time lag from the investment on marketing and sales is also clear. f. The correlation of contemporary MKI and GPR shows positive; the correlations of contemporary MKI and OIR and contemporary MKI and ROA are unclear.