| Summary: | 碩士 === 國立成功大學 === 財務金融研究所碩士在職專班 === 102 === In order to enhance the level of the domestic pharmaceutical industry, Taiwan government is actively promoting the Pharmaceutical Inspection Co-operation Scheme (referred to as PIC /S) certification. In view of the PIC/S rigorous review and assessment of the pharmaceutical industry for software and hardware, Taiwan pharmaceutical industry faces a tremendous impact. This study mainly explores the effect of substantial capital expenditure on the pharmaceutical corporate performances in Taiwan with 41 companies and 177observations from 1998 to 2012. Empirical findings show: First, capital expenditures significantly and positively affect ROA, ROE, EBITDA in the fourth period. Second, capital expenditures show a significant negative impact on FCF. Third, capital expenditures show a significant positive impact on PB in the current period. Fourth, capital expenditures show a significant positive impact on PB in the second period. Fifth, for some important control variables, revenue growth and R＆D costs are showing significant negative impacts on business performance in early phases, and company size has a significant contribution to operating performance.
The results of this paper show that Taiwan's pharmaceutical industry is worth investing in capital expenditures in response to changes of the law. Pursuing PIC/S certification is the new basic threshold of the industry, but not a profit guarantee. Sales follow-up is the key to determine the profitability of the enterprise. Therefore, the pharmaceutical manufacturing industry in Taiwan after major capital expenditures should actively expand revenues and future long-term operational planning to create enough reward.
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