| Summary: | 碩士 === 國立臺北商業大學 === 會計財稅研究所 === 106 === In the past research, firms expanded their market shares to maximize their profits. As the overall economic environment tends to be monopolistic or oligarchy, the enterprise may have more excess profits. Most of Taiwanese Electronic industry consists of Electronic Manufacturing Services. In other words, firms may tend to small profits but quick turnover marketing strategy. In this study, I use Taiwan’s listed electronic companies from 2010 to 2015 to explore the relationship between market leader and profitability. The results reveal that the influence of market leader on profitability is significant negative, but on pre-tax income is significant positive. That means firms pursue maximizing operating profits instead of profitability on electronics industry.
In addition, most of the study of the factors influencing the characteristics of firms, the relationship between size and effective tax rate has been studied the most. They believe that tax is a heavy cost to the company. Therefore, the level of effective tax rate can reflect the level of political costs. Our results showed that the influence of profitability and effective tax rate is significant negative on electronics industry. But market leader’s profitability and effective tax rate is not significant. The reason may because of the Income Basic Tax Act (the Alternative Minimum Tax, AMT) changes the relationship between concentration and effective tax rate. Otherwise, we separate electronics industry to eight different kind of industry, only emiconductor industry’s market leadership and effective rate is significant negative.
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