Research on the Relationship between the Performance of Taiwanese Parent Companies and their Investment in Mainland China: A Study of Listed Manufacturing Companies

• Main Authors: Chen-Ya Wang, 汪震亞
• Other Authors: Chen-Hua Tu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/49857155309255738758

碩士 === 國立臺灣大學 === 國家發展研究所 === 101 === Manufacturing industry has an important position in our domestic economic development, and it’s the main industrial category of investments in Mainland China, so this area is worth of further investigation. However, after both sides across the Straits entered into World Trade Organization, this situation proceeded to a new stage. More foreign capital enterprises entering Mainland China has made Taiwanese merchants face more severe competition, and there’s not relative abundant and low-cost input endowment like the early stage of reforming and opening-up era anymore. Mainland China is no longer the shelter for sunset industry to avoid restructuring pressure, so the impact of investing in Mainland China of manufacturing industry to the performance of the parent companies is necessary to re-estimate. This study is oriented toward representative manufacturing listed companies from FTSE TWSE Taiwan 50 Index, published on March 31st, 2012. After removing the non- manufacturing companies, the remained samples are used to investigate the relationship between their performance and investments in Mainland China by Data Envelopment Analysis, Malmquist Industry and Panel Data Analysis, in order to discover the main factor of enterprises’ productivity. In the literature reviews, we can concluded that FDI behavior has influence on R & D decision, export orientation and capital structure of enterprises, and the abovementioned three characteristics are closely related to their performance. Therefore, this study will select R & D ratio, export ratio and debt ratio as the intermediate variables, to verify whether investments in Mainland China have any influence on the abovementioned three variables on one hand, and to test the relationship between the three variables and the changes of efficiency and productivity on the other hand. According to the results of empirical analysis, FDI to Mainland China by manufacturing companies may retard technical change, and then cause negative impact to total factor productivity. However, if only the data after the financial crisis in 2008 are analyzed, the result shows that the samples that highly inclined to invest in Mainland China have more positive technical change but lower efficiency modification. Besides, even though the investment is obviously gathered in high-income coastal regions, it is investment in inland regions that really spur growth of export, that is to say currently Taiwanese merchants are not focusing on domestic demand market.Finally, R & D expenses of manufacturing industry are successful in modifying productive efficiency instead of improving technical level. Therefore, how to transfer the R & D activities that cater to current market demand and orders from clients to foresighted technology deepening and innovation, and allocate existed R & D resources to activities that genuinely improve productivity, is the feasible strategy to bring competence of manufacturing industry back to path.