| Summary: | 碩士 === 逢甲大學 === 財稅所 === 93 === Abstract
Adapting to a changing business environment is vital for a firm to be successful. In the past studies, scholars indicated a number of factors that can affect this success; such as market competitiveness, market share, the growth of the industry, a firm’s effectiveness, and seasonal fluctuations.
Among these factors, industry growth and firm effectiveness were identified as the key contributors to a firm’s success. These two factors were identified based on two theories, the industrial organization theory, and resource-based theory.
To alleviate weaknesses in the tradition measurement of performance ROA (Return on Assets), we used MVA (Market Value Added) and EVA (Economic Value Added). These new measurement indexes helped us understand the real success of firms. Four factors are selected to examine the variance of firm’s performance;
Year effect, industry effect, firm effect, and year and industry cross-effect. We use the firms in textile and IT industries in TEJ database as our sample.
As a consequence of this study, no matter what index we used, we found that the firm effect is the main factor in determining a firm’s performance. In Taiwan’s textile industries, the percentages of firm effect was: ROA 53.15%、MVA 87.54%、EVA 54.18%. The industry effect was ROA 2.57%、MVA 0%、EVA 0%. In Taiwan’s IT industries, the percentages of firm effect was: ROA 46.38%、MVA 86.90%、EVA 60.24%. The industry effect was: ROA 0%、MVA 6.07%、EVA 0%. This study highlights the factors crucial to the performance of the firms. Besides, the error in the MVA and EVA is smaller than in ROA, it reveals the explanation of MVA and EVA is better than ROA.
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