A Study of the Free Cash Flow Structure of IC, LCD, LED and PV Industries

• Main Authors: Chia-fang Yeh, 葉佳芳
• Other Authors: Jen-Jsung Huang
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/61658520742647774330

碩士 === 國立中山大學 === 財務管理學系研究所 === 102 === Most Taiwanese high-tech industries have characteristics of high capital expenditure. While technology advances further and the process gradually updates, the life-cycles of production lines are getting shorter so companies spent a lot of money on rebuilding and expanding but they haven’t raised profits. Therefore, this study has involved tracking the industries of high capital expenditure and watched to see what business efficiencies and performance could be improved by expanding the product lines. The purpose of this study is based on Free Cash Flow (FCF) structure and has used simple linear regression analysis to examine not only the performance of investment but also the competitiveness of inter-industry. The data of samples were analyzed from Integrated Circuit industry (IC), Liquid Crystal Display industry (LCD), Light Emitting Diode industry (LED) and Photovoltaic industry (PV) of 194 Taiwanese TSE and OTC companies during 2007-2012. The investigation could be summarized as below: 1.IC industry has the best profitability in the four industries. 2.LED industry has the highest investment in the four industries. 3.IC industry has the best competitiveness in the four industries. 4.IC industry has the best return about investment in the four industries. 5.IC industry has the highest rate of positive free cash flow among homogeneous companies in the four industries. The results showed that the IC industries investment performance is the most profitable in four industries and the packaging and testing companies are outstanding among their sub-industry. The equipment suppliers of the IC industries, LCD backlight module industries, LED upstream Epi-wafer and PV chips industries are less competitive. The TFT-LCD of LCD industries pointed out the negative relations between investment and performance.