The Empirical Research on Financial Policy and Performance of the High-Risk Tech-Industry in Taiwan

• Main Authors: Hsu, Chen-Png, 許楨屏
• Other Authors: Hung, Chih-Young
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/2za4fv

博士 === 國立交通大學 === 科技管理研究所 === 102 === Under the scheme of National Innovation Systems (NIS), which covers primarily a knowledge-based innovation system, a technological innovation system, and a finance service system, any government policy on each of any sub-system will affect the NIS as a whole. The manner in which governments provide financial innovation assistance to technology industries in order to boost economic growth is an issue of great interest to industrial policy drafters and scholars worldwide. In Taiwan, a policy-oriented IPO system, named as “High-Risk Tech-Industry system”, has launched and nurtured several world-known enterprises by allowing them increased self-sufficiency in raising capital. However, this IPO system seldom receives attention and neither further discussion, a deficiency we remedied in the present study. The objective of this study is to illustrate the importance of financial innovation system in the development of high-tech industries in Taiwan, and to investigate enterprises utilizing the High-Risk Tech-Industry system without record in line with any IPO profitability requirement. We observed a panel data comprising of 62 High-Risk Tech-Industry samples and 216 matched samples, for seven fiscal years, for an IPO period from 1995 to 2003. Different from prior empirical literatures on finance performance employing the OLS techniques, this study applies the Heckman two-stage procedure to correct self-selection bias as the IPO data might be truncated. Regarding divergence from theory, scholars originally predicted that firms with financial constraints would be most likely to pursue IPO; however, the opposite situation seems to prevail in this system. High-Risk Tech-Industry IPO choice is a self-selection result by enterprises that have a low return on equity, high R&;D intensity ratios, high revenue growth rates, large amounts of assets, low debt-to-equity ratios, and relatively low bank loan interest rates. We also found no significant evidence supporting High-Risk Tech-Industry system help sustain future entrepreneurial growth.