A Financial Distress Pre-Warning Study with Corporate Governance on TSEC-Listed Electronic Companies - Application of Fuzzy Statistic

• Main Authors: Ming-Yan Liu, 劉明晏
• Other Authors: Wen-Ying Cheng
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/01084175344188635626

碩士 === 國立屏東科技大學 === 企業管理系所 === 95 === This research is to construct a financial distress pre-warning model for TSEC-Listed electronic companies on the viewpoint of corporate governance. The variables choosed are director’s and supervisor’s ownership of the firm, accounts receivable, accounts payable, inventory, advance receipts, prepayments, cumulative depreciation-fix asset and 21 financial ratios published by SFB in Ministry of Finance. By deleting financial ratios which are controlled of earning management, then use those to construct fuzzy regression model. The result shows: 1. Shareholder's equity/total assets ratio, debt ratio, quick ratio, accounts receivable turnover ratio, average days for cash receipts, inventory turnover ratio, average days for sale of goods, return on total assets, cash flow ratio, cash flow adequacy ratio and cash reinvest ratio may be the ratios controlled of managers. 2. Accounts receivable, accounts payable, inventory and advance receipts are possibly controlled of earning management. Shareholder's equity/total assets ratio, debt ratio, long-term capital / fixed assets ratio, current ratio, quick ratio, fixed assets turnover ratio and cash reinvest ratio are significant factors in discriminating financial stages of TSEC-Listed electronic companies. Director’s and supervisor’s ownership of the firm are significant factors in discriminating financial stages. 3. Finally we adopt fuzzy regression to construct financial distress pre-warning model for TSEC-Listed electronic companies. The discriminability of the whole model is 89.7% and the discriminability of the three administration stages from financial stability to protection under the law of Taiwan, and bankruptcy and liquidation are 90.2%, 87.9%, 72.4%, respectively. Thus, we suggest investors should be taken more care to evaluate financial ratios and corporate governance variables to avoid income loss.