Study of the Effectiveness of R&D Intensity and the Correlation Factors

• Main Authors: Chih-Tsung Wang, 王智聰
• Other Authors: Huey Yeh Li
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/669a89

碩士 === 國立虎尾科技大學 === 經營管理研究所在職專班 === 102 === Innovation promotes the competitive advantages of an enterprise, and it is also an indispensable edge on survival. To look back upon the history of our industry, due to the low cost of industrious labor and the convenience of its location, our country won a foothold in the foundry industry within the global economic system. However, the globalized competition and the rapid structural changes in industry have severely affected the development of our country’s foundry industry. Only to create a new value for the enterprise through investing in R&D activities, the enterprise’s competitiveness can be enhanced for achieving the goal of business continuity. This study aimed to investigate whether a company’s expenses on R&D would influence the enterprise value. Taking the listed companies from 2006 to 2012 as study samples, it applied the multiple regression analysis to research the relevance of R&D intensity to the company value. The empirical result revealed a significant positive correlation of the R&D intensity to the corporate value. In other words, when the R&D intensity is higher, so is the overall value of the company. Statute for Upgrading Industries was replaced by the Industrial Innovation Act in The Investment Tax Credit Provisions in 2010; consequently, investment tax credit was dramatically narrowed. The empirical result showed a slightly reduction in R & D investment when analyzing the short-term data between 2009 and 2010; however, if the period of the research data was extended (from 2006 to 2012), the outcome presented a totally different phenomenon. It demonstrated the domestic industry did not reduce R&D activities because of the Industrial Innovation Act to take effect; relatively, it also displayed that tax incentives were not the decisive factors to influence the decision of industrial R&D investment. This paper continued to apply T-test to research the different influence in various types of business after the implementation of the Industrial Innovation Act. The empirical result showed that the implement of Industrial Innovation Act posed different impacts on the R&D investment, but it did not influence on R&D intensity significantly. The result of this study can provide as a reference to the Authorities to formulate tax policies and to the corporate management authorities and the investors to make decisions; besides, it can also complement the related documents of the past.