| Summary: | 碩士 === 元智大學 === 管理研究所 === 98 === The small and medium enterprises are the foundation of Taiwan''s economic development, and many exchange-listed companies are evolved from the small and medium enterprises. The main purpose of this dissertation is to investigate the financing issues involved in the process of going initial public offering from SMEs (Small-Medium enterprises). Throughout the in-depth interview with the chairman of TUNG THIH ELECTRONIC CO., LTD., we attempt to explore the firm''s motives and reasons behind initial public offering. We further analyze and discuss the firm’s prospective in constructing capital structure and financing pecking order.
The conclusions are as follows:Throughout initial public offer the case company transformed into a large enterprise and experienced an increase in its financing channels.The construction of the capital structure of the case company has a preference of using equity capital rather than forms of liability (debts), which does not meet the optimal capital structure.The case company’s financing pecking orders are: internal cash, issuing new shares, loans from financial institutions, and bonds, which does not confirm the pecking order theory.The case company’s motivation of going public was to increase financing channels and its reputation; in order to enhance operating performance and to attract more talent staff.
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