The Effect on Internationalization of Capital Structure and Dividend Policy - Evidence on America and Taiwan Electronic Industry

• Main Authors: Yuh-yu Rau, 饒鈺渝
• Other Authors: Feng-Li Lin
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/34367624509950158241

碩士 === 朝陽科技大學 === 會計所 === 99 === In order to keep its product more competitiveness, electronic industry would require to make more effort in R&D and capital investment via diversification and internationalization in market. The financial funding strategy and financial decision making of the internationalization electronic businesses should pay attention simultaneously to the world and industrial trending for achieving the optimal adjustment. Taiwan''s electronic industry has highly relationship with the U.S. electronic industry. The main motive in this study includes the difference between debt ratio and cash dividend ratio of internationalization and non-internationalization electronic industry in U.S. or in Taiwan. The export ratio greater than 50% is used for the criterion of the international electronics industry. The relevant study of internationalization electronic industry in facing complicated international environment can be used for the reference of finance funding strategy and financial decision making. Results in this study are shown as follows： (1) Debt ratio of U.S. and Taiwan’s internationalization electronic industry is lower than that of non-internationalization electronic industry, probably because internationalization electronic own the core technology of matured products, higher profitability, higher growth and more internal funds. (2) Cash dividend ratio of U.S. internationalization electronic companies is lower than that of non-internationalization electronic companies, probably because internationalization electronic have higher Beta of the firm than non-internationalization electronic companies. (3) Debt ratio of U.S. internationalization electronic companies is lower than that of the Taiwanese, probably because U.S. have high profitability, higher growth and have more internal funds of that higher than that of Taiwan. Thus, it’s possible to payout in less cash dividend. (4) Cash dividend payout rate of U.S. companies is lower than that of Taiwan, probably because of U.S. with higher internationalization and higher the Beta; Thus, the company with high system risk would come with more uncertainty of cash flow in future that it could possible to payout less cash dividend.