| Summary: | 碩士 === 輔仁大學 === 管理學研究所 === 96 === With the soaring economic growth in China and follow by the influences as a result of China’s economic reform in a comprehensive scale after its joining of the WTO, China has become the biggest country of accepting foreign capitals among the developing countries. Of all the foreign capitals in China, Taiwan in particular is a country that shares the same cultural origin and has a close social link with China. Consequently, issues concerning business presence and performance of Taiwan investment in China are among the hottest topics to be discussed by experts from around the world.
According to Securities & Futures Institute, TSE and OTC listed company is required to list a detailed statement of investment in China, starting from 1996; as a result, this study will be traced back to 1996. Based on the fact that China’s initiation into WTO was on Dec. 11th, 2001, while Taiwan’s entering was on Jan.1st of the following year, the year of 2002 was chosen to serve as a borderline for the timing of entry. Investments initiated on and before December 2001 were classified as early-stage investments and those began in and after the year of 2002 were regarded as later-stage investments. The purpose of this study is to explore the influences on business performance subject to timing of entry, ownership strategy and location selection of Taiwanese electronic industry’s investment in China.
The findings are described as follows:
1. In terms of timing of entry, the earlier the better.
2 In terms of ownership strategy, the investment rate-of-return of sole proprietorship in early stage appeared to be higher than which of joint venture. While in the cases in later stage, the investment rate-of-return of sole proprietorship was higher that which of the equal-equity joint venture.
3. In terms of location selection, the investment rate-of-return gained from the PRD (Pearl River Delta) appeared to be much higher than other places, with electronic parts industry being the one enjoying the highest profits while telecom network industry earned its best profits in location outside this region.
4. In terms of corporate characteristics, the investment rate-of –return for enterprises of low capital intensity appeared to be higher only in first-year-investment.
5. In terms of investment scale, enterprises with much more invested capitals appeared to have better financial performance in the first three years. Evidences can be found in photonics industry, electronic parts industry and other electronics industry.
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