A discussion of the relationship between the capital expenditure and the company’s operation performance from the aspect of corporate governance - the new listed company as an example

• Main Authors: Mei Na Fan, 范美娜
• Other Authors: Chao Shi Wang
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/4kerh8

碩士 === 國立臺中科技大學 === 企業管理系碩士班 === 103 === This research investigates the influence of capital expenditure on a company’s operating performance from the aspect of corporate governance. Sampling the new listing OTC, this inquiry sets up the corporate governance indicators and capital expenditure as the variables to evaluate operating performance, which consists of four chosen criteria - return on asset, return on equity, profit margin and earnings per share. The gleaned materials of the 499 companies of the new listing OTC from 2003 to 2010 are researched from 2003 to 2013. By means of the regression model analysis, the impact of corporate governance indicators and capital expenditure on the following three years’ operating performance can be discovered as below: 1. There is a positive relationship between the first year’s profit margin after the capital expenditure and the first year’s earnings per share. However, no influence on first year’s return on asset and return on equity is seen and the same for second and third years’ four criteria. 2. With a closer examination of the impact of the good corporate governance group on management performance within three years after the capital expenditure, the substantial positive relationship is seen in the first year, so do other criteria including return on equity, proft margin and earnings per share. In the bad corporate governance group, a negative correlation is found between the rate of capital expenditure towards the total return on asset and earnings per share. It can be shown that good corporate governance group progresses better in terms of operating performan after the capital expenditure. 3. By adding the controlled variables, a further discovery demonstrates that the sampled company with the minor rate of debt, larger-scale economy and lower capital intensity enhances the operating performance after the capital expenditure more profoundly.