| Summary: | 碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 100 === Over time, the Taiwanese industry has evolved into different mainstream industries and stages of economic development, from the semiconductor and electronics industry, optoelectronic industry, and biomedical industry to the popular green energy and cultural creativity. The venture capital industry in Taiwan plays a tremendous role in investing funds, introducing business management techniques, and nurturing corporations toward listed companies.
However, the board of directors’ investment decisions on venture capital may have a direct impact on corporate performance, including: (a) the board of directors’ biases towards investing in certain industrial stages or areas, (b) correlations between the size of the board of directors and investment performance, (c) effects of canceling shareholders'' tax credit by "Regulations on the Scope and Guidance of Venture Capital Investment Enterprises" on investment decisions, and (d) performance differences before and after venture capital investment. In this study, we investigate the aforementioned hypotheses using actual investment cases from two venture capital firms under the same investment management company.
The results of this study demonstrate that among these two firms, the preferred investing industries and industrial areas differ based on the background of the board of directors. In addition, both firms preferred investing in the expansion period of the industrial stage. Although the size of the board of directors for these two firms is fairly compatible, the investment performance across these firms are significantly different. This suggests that the size of the board of the directors may not be correlated with investment performance. Firm V, which was established after the regulation of canceling shareholders’ tax credit, still targets investments mainly in the high-tech industry (78%) and the regulation has not had any effect on the firm’s investment decisions. Our study further shows that because of poor investment returns from listed companies, Firm V generally still follows the investment plan in venture capital investment as recommended by the management team after exiting venture capital investment. Hence, investment performance is not affected by expanding the scope of investments.
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