Operating Efficiencies Before and After Listing in Electrical Machinery Industry

• Main Authors: O Chang, 常娥
• Other Authors: Chao-Shi Wang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/wm9r96

碩士 === 國立臺中科技大學 === 企業管理系事業經營碩士班 === 101 === Traditional industries have served as the cornerstone for the economic takeoff of Taiwan and much of this success is attributable to contributions from the electrical machinery industry. Because of outward-transferring industrial production and intensified international competition, the operating efficiency of listed companies has become increasingly crucial concerning the survival and development of enterprises and thus worthy of study,. Targeting listed companies in the electrical machinery industry in Taiwan, in this study, we assessed the operating efficiency in the 3-year timeframe before and after listing. Depending on specific industrial characteristics, the input items included fixed assets, number of employees, and expenditure ratios for research and development, and the output items included net revenue and earnings per share. We explored the corresponding coefficients between input and output. Based on the indicators of progress in operating efficiency, the performance of initial public offering (IPO) stocks and abnormal returns were analyzed. We provide opinions and suggestions for the electrical machinery industry, to facilitate decision making in allocating input and output resources, thus improving operating efficiency. The analytical results can provide a reference for the electrical machinery industry. The empirical analysis revealed that: (a) Statistically, the indicators of progress in operating efficiency levels attained a mean of 0.9760 (less than 1). The retrogressive group comprised 34 companies compared with 19 in the progressive group, indicating that for a majority of the listed companies, the operating efficiency during the 3 years after the listing was lower compared with the 3-year period prior to the listing. (b) A honeymoon period effect exists for IPO stocks. Regarding timing, new stocks are most effectively issued when the overall economic situation is in a boom period, in which funds can be successfully raised, and market returns gained. (c) At the initial listing stage, abnormal returns exist. The performance indicators show a declining tendency during the 3 years following the IPO, in which short-term abnormal returns exist.