Types of Long-term Investment and Firm Performance - Evidence from Taiwan Electronics Industry

• Main Authors: Cheng Kai-Wen, 鄭凱文
• Other Authors: Hung, Chih-Young
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/24089087915716940327

碩士 === 國立交通大學 === 科技管理研究所 === 98 === We classify the long-term investment with different types to investigate the relationship between long-term investment behavior and firm performance. Under the premise of sustainability, Enterprises engaged in long-term investment is because of financial, strategic or other intentions? How do these purposes impact on firm performance? In addition, this study would figure out whether the different sizes of the companies will alter the result. In the end, we want to understand the general behavior on long-term investment in Taiwan Electronics Industry. Our study listed 250 companies in Taiwan during 2004-2008 as study samples. The empirical results show that the financial purpose will not affect firm performance significantly. But in long-term prospect of view, financial purposes will decrease firm value. Strategic purpose has negative effect on performance but positive on value no matter in short-term or long-term. Long-term investment for other intentions has no evidence on short-term effect, but do have negative effect in the long run. About company size, we could not conclude that the bigger of its size, the better performance it would has. Last but not least, this study tells that Taiwan electronic companies should pay more attention on strategic long-term investment, and reduce the financial and other intentions’ long-term investment.