The Effects of Operating Expenditures to Earnings and Market Value with long term observation in Taiwan

• Main Authors: De-song Liao, 廖德松
• Other Authors: Che-peng Lin
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/27805636625865504819

碩士 === 國立彰化師範大學 === 企業管理學系 === 94 === This study aims to analyze the causal relationship between operating expenditures（R&D, Selling, General & Administrating expenditure）and the future earnings by using multiperiod model. How to allot the R&D, Selling, and General & Administrating expenditure to make profit maximum is worthy to investigate. And this relationship is related to industrial environments, the properties of industry and firm’s conditions（such as firm’ size）. Firm’s financial data which obtained from TEJ from 1996 to 2004 were used to make empirical study, and try to control the effects of industrial environments and company size. We assume that the R&D, Selling, General & Administrating expenditure have positive and time-lag effects to the performance of a company. According to this study, the results generally support our assumptions. For electrical industrial company, R&D, Selling, General & Administrating expenditure all have positive effects to performance. It is the best strategy for non-electrical industrial company to invest in R&D and General & Administrating expenditure. Large company should expend more their budget in General & Administrating or Selling expenditure, it is no benefit in R&D expenditure. In contrast, the competitive advantage of small companies is R&D, and they should invest more budget in R&D expenditure.