A Comparison of Financial Returns between Parent and Subsidiary Companies: Evidence from Industrial Computer Corporations in Taiwan

• Main Authors: Lai, Yen-Jung, 賴彥蓉
• Other Authors: Hu, Jin-Li
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/5kuykb

碩士 === 國立交通大學 === 管理學院經營管理學程 === 107 === This study focuses on comparing the financial status of ASUS Group with its 5 subsidiaries and Hon Hai Group with its 13 subsidiaries. To examine the relative relationship between the profitability of the parent company and the subsidiary company. We assume that the subsidiary company with smaller capital and required investment, and the profitability is higher than that of the parent company. The traditional PC/NB manufacturers and large ODM/OEM companies are entering the industrial computer through joint ventures or shareholdings in the face of the mature development of their original industries and supply chains, such as: Hon Hai invests in Huahan and Compal invested in Avalue. Each company owns its Dynamic Capabilities Perspective (DCP) advantage (Teece et al., 1997), expanding its survival through mergers and acquisitions and cross-shareholdings. Therefore, we will explore the direction and the company's development in relation to the financial relationship between the parent company and the subsidiary company. In addition to the main goal of profitable company, it also has the concept of sustainable management, hoping to achieve a long-term success. Therefore, it is necessary to integrate and invest resources for future developments, and capital is a very important part. In view of the future development trend, it is also a very important of continuously invest resources in the development of services and products in response to the diversification of the company's future development. For the continuous development of the company, the overall planning of the industry layout is very important.