A Study of Financial Warning Model based on the Higher Education Institutions in Taiwan：A Case Study of Private Institutes of Higher Education with Low Enrollment Rate

• Main Authors: Yu-jhih Lin, 林郁智
• Other Authors: Yu-shan Chang
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/d9mt7c

碩士 === 國立中山大學 === 財務管理學系研究所 === 103 === The private institutes of higher education is a critical element which make up the system of public education in Taiwan. It has a responsibility to function and duty for the most part of education in Taiwan. Yet there are many colleges and institutes with low enrollment rate due to the Trend of Fewer Children recently. They are going to have to face up to the fact that their deficiency of recruitment is becoming severe and financial condition is getting worse. The operation of private school with low enrollment rate will be more challenging by this impending impact of the Trend of Fewer Children in 2016. The empirical study has adopted the database query system which provide individual enrollment rate and feature of school about Taiwan Higher Education is established by ministry of education. Definition of the school with low enrollment rate is a private college or institute which the average of enrollment rate is below 50％. The research period is form 2009 to 2013. Finally we use the Ranking of the Tenderers Method to conduct a financial warning of private colleges and institutes. Also construct a 5-years and 10-years equity valuation by Free Cash Flow Discounted Model. The result shows that University of Kang Ning and Lan Yang Institute of Technology had the worst performance in each financial aspect. Asia-Pacific Institute of Creativity, Kao Mei College of Health Care and Management, Wu Feng University with problems in liquidity and soundness should be solved immediately. Fortune Institute of Technology, Ta Hwa University of Science and Technology, Nan Jeon University of Science and Technology had major issues with efficiency. Additionally we find out that there are four colleges / institutes ( Fortune Institute of Technology, Ta Hwa University of Science and Technology, Nan Jeon University of Science and Technology, Lan Yang Institute of Technology ) which plan of organizational change or closer mechanism should be implemented as soon as possible.