The Influence of Business Cycle and Capital Expenditure on Enterprise Performance

• Main Authors: Lai, Zih-Lian, 賴姿璉
• Other Authors: Wang, Sue-Fung
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/09876854016061895759

碩士 === 國立交通大學 === 管理科學系所 === 104 === This study used listed companies in Taiwan as a research object, and added the business cycle into discussion. Considering the reasons of time series and cross section, we survey the influence between the capital expenditure decision and enterprise performance（ROA and ROE）by panel regression analyze. We found that there is relationship between the timing of capital expenditure investment and business cycle. During boom, the influence of capital expenditure and the enterprise performance becomes lower. However, due to cost of benefit, in recession, the influence of capital expenditure and the enterprise performance becomes higher. The implication of the study is that firm can invest capital expenditure more in recession to cost down. In order to get more information, we separate the sample into industry and size separately. We found that due to different characteristics of industry, the technology industries are affected by business cycle more than by conventional industries. We also found large firms have more resource and capital expenditure items, so they are affected by business cycle more than by small firms. The timing of capital expenditure investment is an important key to companies.