Strategy and performance analysis on forming an investment holding company: a case study on KD holding corporation.

• Main Authors: An Chi Lo, 羅安琦
• Other Authors: C. H. Chan
• Format: Others
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/98592201622780249963

碩士 === 長庚大學 === 企業管理研究所亞太營運管理組 === 99 === With fierce competition in the global market, Taiwanese enterprises should strengthen their competitiveness. In addition to effective integration of internal and external resources to build their own core competencies and create the value chain within the core business, enhancing the overall combat efficiency and advantages by adjustment of the organization structure with mergers and acquisitions or splits has become an urgent issue to these enterprises. With the aim of serving as the reference for companies in the formation of an investment holding company, this study chose a company as the subjective enterprise to further analyze the background of the establishment of an investment holding company, adjustment of the organization structure, strategies and operating performance and made recommendations. This study chose KD Holding Corporation (the “KD Holding”) as the subjective enterprise. First, the formation strategy of the investment holding company is reviewed from the perspectives of KD Holding and its parent company, CTCI Corporation (the “CTCI”). Second, financial ratio analysis is conducted to compare the operating performances of major subsidiaries of KD Holding before and after the formation of investment holding company. Third, the operating performance of KD Holding for past five years is compared with other comparables which are non-investment holding companies with the method of financial ration analysis. The empirical results are as follows: 1. With the strategy of forming an investment holding company, KD Holding and the parent company, CTCI, had not only made the business territory of KD Holding expanded, but brought investment profits to CTCI. 2. Three commonly used measure of financial performance, ROA, ROE and profitability, are applied to evaluate the performances of KD Holding and its major subsidiaries. It’s found that the performance indicators showed an upward trend after the investment holding company was formed. 3. Observed from the trend analysis, the operating performance of KD Holding had been grown positively, and outperformed other comparables which are non-investment holding companies since 2008.