Abstract There are many factors, such as long-term depression and industrial moving, to induce Taiwanese corporations into financial distress since the Asian Financial Crisis erupted in 1997. In research of financial distress, it¡¦s difficult to distinguish the exact factors that whether financial aspect or other aspect cause financial distress. Management normally will take improvement actions in operation or financial respects when it perceives certain aspects getting worse. In practice, organization reforming and changing top management team may be the most popular and effective solutions. But, the effects for adopting such actions are uncertain. Therefore, those financial-distress corporations after taking successful improvements in change management are worth the research of its improvement procedures and methodologies. Many researchers evaluate corporation performance using certain financial ratio such as earnings per share (EPS), return on equity (ROE), and return on investment (ROI). According to the earning calculation as required in Generally Accepted Accounting Principle (GAAP), some expenditures which will make corporation benefit from a long-term respect are expensed currently. This result may understate current period and overstate future period earning and assets. Management may reduce this kind of expenditures when EPS is the only indicator for performance evaluation. Economic Value Added (EVA), one valuation method based upon residual income, will improve above-mentioned shortcomings of traditional performance evaluation. The major concept of EVA is that adjustment of accounting accounts is necessary to get real value of corporation and corporation needs to earn profit exceeding return of costs of capital to create value of shareholder. The case in my research, Y company, expanded its investment in Compact Integrated Steel Mill project which was announced in 1992. However, after Asian Financial Crisis in 1997, Y company¡¦s operation was getting worse and was unable to repay its bank loans. Y company then became a financial-distress corporation. The top management was changed after the majority shareholdings of Y company were transferred to C company. Since ownership change, Y company made organization reforming with ¡§Theory E¡¨ first and ¡§Theory O¡¨ second. We adopt EVA as the vehicle to assess the performance of new management¡¦s improvement. In our research, EVA of Y company was turnaround after C company¡¦s acquisition of Y company¡¦s shareholdings and its top management was totally changed. Keywords: Financial distress, Change management, Theory E, Theory O, Economic Value Added, EVA, Residual income.

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¡iAbstract¡j After the disregulation of the telecommunication in Taiwan, Strategy Alliances become the hit among the companies. And the M&A is a great mass fervor in advanced countries. What we concern are if the alliance performance is the same with what the manger expect and how to measure the value of the enterprise. As we know, Sometimes the financial reports can¡¦t reflect the market value of a company. EVA (Economic Value Added) is a new indicator in financial field. It is aimed at the new hi-tech companies, which have little asset and high R&D abilities. The research is focused on the Excite@Home, the biggest broadband internet service provider (ISP) in the USA. Excite, the sixth internet content provider (ICP) in America, was merged by @Home in 1999. According to the conclusion, the marketing cost affect FGV so much, both of them are direct proportion. It means the marketing makes sense and increases the market value of the business when the merger occurred. But the margin advertising revenue didn¡¦t increase for a long time. Why? Because the integration of the merger didn¡¦t work out very well and people anticipate negatively for the company¡¦s future. Thus it can be seen the value drivers reflect the success or failure of their strategic decision. The result also shows the business model drives FGV. Taking the Excite@Home for example, FGV has huge variation accompany COV just a ripple when the company makes vast investment. In a word, when the strategic planning matches with the market expectation and it implement successfully, the FGV goes up so that the market value of the enterprise increases. On the contrary, either the failure operation or the wrong strategy makes FGV slump, even lower than COV.

A three-year field experiment was conducted to evaluate the tolerance and compensatory response of rice (Oryza sativa L.) to injury caused by the sugarcane borer, Diatraea saccharalis (F.). Two mechanisms of within-plant tolerance/compensation were observed. Stem injured plants produced ca. 0.69 more tillers than uninjured plants, while tillers with leaf and leaf sheath injury produced larger panicles, up to 39.5% and 21.0% heavier than uninjured tillers, when injury occurred at 3rd tiller stage and at panicle differentiation, respectively. A 2-year field cage experiment was conducted to determine the biological control potential of Cotesia flavipes (Cameron) against the sugarcane borer on rice. The effective search rate was 49 cm2 ground area (2.2 tillers) parasitoid-1 day-1. A cohortbased age-structured model was developed to simulate the population dynamics and economic value of the sugarcane borer and C. flavipes in rice, as affected by overwintering larval density, timing and rate of parasitoid aerial release, and year-to-year climate (temperature and rainfall). The results suggest C. flavipes was most effective when released during the 1st sugarcane borer generation. The maximum simulated economic benefit ($112.05 ha-1) was ca. 7.8% of that provided by insecticide-based control. The inability of C. flavipes to provide economic control in temperate-subtropical areas is due to its high rearing cost, a low effective search rate, a low maximum rate of parasitism per female, and both spatial and temporal asynchrony of parasitoid emergence with the larval hosts. The biocontrol capability of Trichogramma galloi Zucchi was also simulated. The maximum economic benefit provided by T. galloi was $1128.75 ha-1, ca. 79.0% of that provided by insecticide-based control. Theoretical analyses were conducted to estimate the effectiveness of augmentative releases, using data from previous studies of parasitism of lepidopteran pests by hymenopteran parasitoids with host and parasitoid density as factors. The maximum daily parasitism per female was highest for parasitoids that attack exposed larvae, followed by parasitoids that attack eggs, semi-exposed larvae, and concealed larvae. Simulation analyses were conducted to estimate the population dynamics and economic value of D. saccharalis, herein used as a model host, and each of 5 parasitoid categories (solitary parasitoids that attack eggs, exposed larvae, and semi-exposed larvae, gregarious parasitoids that attack eggs and concealed larvae) in rice, as affected by overwintering larval density, timing of parasitoid release, and year-to-year climate. Among the 13,500 simulations that were conducted, 480 (3.6%) provided a greater economic value than insecticide-based control. All 480 simulations were obtained using solitary parasitoids that attack exposed or semi-exposed larvae. Solitary egg parasitoids provided an average of 42.2% of the economic value provided by insecticide-based control when released 30 days after planting. Gregarious parasitoids that attack eggs or concealed larvae provided almost no positive economic benefit. For parasitoid species that do not overwinter successfully in areas where they are released or that exhibit temporal or spatial asynchrony with their host early in the spring, our results suggest augmentative biological control is only effective for solitary parasitoids that attack either exposed or semi-exposed larvae, with current rearing, shipping and release costs.

S. David Young and F. O¡¦Byren (2000) divided the economic value added (EVA) into two parts, current operating value (COV) and future growth value (FGV). From financial markets, it was found out that the fluctuations of stock prices of businesses were mainly based on the expectation of the investors to the operation performance and future growth of the businesses. Hence, the businesses can create higher market value only their substantial growth rate exceeds expected growth rate from the market. This study adopts O¡¦Byren¡¦s theory (2000) to do the empirical case study of IC design industry in Taiwan. Firstly, the relationship between future growth value of business and their long term equity input rate (LTEI/IC), net operating profit after tax (NOPAT(G)%), Gross Profit/OE were examined. Secondly, by paradigm empirical case study, this study tries to find out the relationship between the factors that affect future growth value of business and the innovation strategy. Thirdly, this study tries to figure out recommendations for the business to enhance its future growth value. This study finds out the factors that affect the future growth value (FGV), in stock market, of business of IC design industry in Taiwan. The investors focus on NOPAT(G)% for on-growing businesses; they focus on continuous growth of Gross Profit/OE for expanding businesses; and they focus on higher expectation of investment performance from LTEI/IC for mature business sectors. In addition, the results of this empirical study of investors¡¦ expectation on the growth of MediaTek Inc. are as follows: 1. Its Gross Profit/OE and NOPAT(G)% are obviously superior to the other sample business sectors. 2. There is positive correlation between Gross Profit/OE and NOPAT(G)% for killer applications (high market-share products) resulted from applying disruptive innovation strategy. In conclusion, this study provides some recommendations for the businesses pursuing incremental growth or constant growth, as below: 1. Competition strategy decision: To take the innovation strategy in accordance with the performance and specification of the products, target customers and business models. 2. Effective cost control: Continuous improvements by innovative concepts and managements to reduce the costs in marketing, R&D, management, risk from material acquiring, yield rate and operation costs, etc. 3. Profit maximization: It is the key for business success and profit to apply correct innovation strategy as well as effective cost management.

In this paper, the popular fundamental analysis model Economic Value Added is tested for any ability to generate returns above that explained by book-to-market effects on American large cap stocks. A zero net-investment hedge portfolio-test was undertaken where the Economic Value Added® fundamental analysis was applied on a sample of large cap stocks, sorted into quintiles after book to market valuation. The portfolio investing in the extreme quintiles gained positive returns between the years 1999 – 2010 equal to an average yearly total return of 7,32 %. During the test-period, the benchmark portfolio constituent of stocks sorted in the same way but without the Economic Value Added® analysis only managed to score returns equaling 2,3 %, adding evidence in favor of the Economic Value Added® analysis. The Economic Value Added also showed a better risk-profile than the benchmark portfolio, measured as the Modigliani Risk-Adjusted Performance over the entire period, further acknowledging the abnormal returns. However, the Economic Value Added® sample portfolios where unevenly distributed regarding number of stocks, foremost in the short-sold part for some years, mitigating the test as strong evidence in favor of the Economic Value Added® analysis. An independent samples t-test also did not reject the null hypothesis. Despite the mixed results of the test, the strength in the specification of sample and choice of method leads us to conclude that that the Economic Value Added® seems like a moderately effective tool for identifying mispriced stocks.

This research was conducted to determine whether the intrinsic share values that are obtained using the EVA valuation model are an indicator of share prices as quoted on the JSE Securities Exchange. The research did not differentiated between companies that have implemented EVA in South Africa and those that have not. The research was conducted by performing EVA intrinsic share price calculations for 43 companies listed on the JSE Securities Exchange. These EVA share prices were correlated to the actual share price as quoted on the JSE Securities Exchange, for the current and lagged periods of one and two years. The resultant correlation coefficients were tested for significance at the 5% level. The results show that there is no statistically significant correlation between the EVA intrinsic share values and the share price as quoted on the JSE in both the same and lagged periods. Hence we cannot conclude that EVA is an indicator of share price. / Thesis(MBA)-University of Natal, Durban, 2003.

Diss. (sammanfattning) Uppsala : Sveriges lantbruksuniv., 2009. / Härtill 4 uppsatser.

Zugleich: Diss. Wirtschaftswiss. Zürich. / Im Buchh.: Bern ; Stuttgart ; Wien : P. Haupt. Literaturverz.

Thesis (MEng)--University of Stellenbosch, 2000. / ENGLISH ABSTRACT: The age old principle of earnings exceeding the cost of capital as a sound basis of wealth creation has been re-packaged and to a large extent, prominently revived, by the Stern Stewart Consultancy of New York in the form of EVA (economic value added). The most well know application of EVA for the past 10 years and subsequent success has been with the global company, Coca Cola. However, the widely debated capital asset pricing model - with no conclusion in site - is used as the basic principle in calculating EVA and therein lies one of its many weaknesses. All aspects of measurement is the foundation on which Industrial Engineering is based. This dissertation set out to evaluate this financial measurement and / or measure in terms of; a) an ability to replace any existing financial ratios b) an ability to measure wealth creation c) an ability to influence or improve on manufacturing systems such as JIT (Just-In- Time) or TOC (Theory of Constraints). d) an ability to focus on the productive use of capital and lastly e) an ability to point towards failure of a business when realising a low or negative EVA On a comparison with the traditional financial measurement techniques and ratios the EVA concept shows too strong a correlation to render it "unique" or able to replace EPS (earnings per share) as the single most important indicator in the financial markets. There is also the interesting phenomenon that industrial sectors vary significantly from country to country in their ability to earn over and above their cost of capital and that being the case in EVA terms, the question is raised whether those countries with negative EVA industrial sectors, should consider moving out of those businesses. The EVA calculations consist of reducing a company's annual earnings with its total weighted average cost of capital and a positive result is stated as a sign of "wealth creation" whereas a negative result points to the destruction of wealth. As will be seen in this dissertation, the EVA measure is healthy as to focussing on the "hurdle" effect of the cost of capital but that the world consists of many organisations with low or negative EVA that have been successfully doing business and producing profits for many years. / AFRIKAANSE OPSOMMING: Die eeu oue beginsel dat inkomste die koste van kapitaal moet oorskry vir 'n grondige basis om rykdom te skep, is herverpak en tot In groot mate, uitstekend vernuwe deur Stern Steward Consultancy van New York in die vorm van ETW (ekonomiese toegevoedgde waarde [EVA)). Die mees bekende toepassing van ETW die afgelope 10 jaar asook die gevolglike sukses daarvan is op die internasionale maatskappy, Coca Cola. As gevolg van die feit dat die onvoltooide debat rondom die kapitale bates prysmodel as beginsel gebruik word in die berekening van ETW, is die waarde van die ETW maatstaf dienooreenkomstig verswak. Die aspek van maatstawwe of meting is een van die hoekstene van Bedryfsingenieurswese. Hierdie tesis het dan dit ten doel gestelom hierdie ETW maatstaf te evalueer in terme van; a) 'n vermoë om enige bestaande finansiële verhouding te vervang b) veral die vermoë om die skep van rykdom aan te dui c) 'n vermoë om 'n invloed te hê, of selfs verbeterings aan te bring aan moderne vervaardiging stelsels soos .HT (Knapbetyds) of TOC (sinkrone vervaardiging) d) 'n vermoë om die produktiewe gebruik van kapitaal te meet en e) 'n vermoë om aan te dui of 'n onderneming gaan faal as gevolg van 'n lae of negatiewe ETW waarde. In vergelyking met die tradisionele finansiële maatstawwe en verhoudings, wys die ETW konsep 'n te sterk ooreenkoms met bogenoemde om dit as uniek te beskryf of om VPA (verdienste per aandeel [EPS)) as die belangrikste aanwyser van die finansiële markte te vervang. Daar is ook die interessante verskynsel dat industriële sektore beduidend verskil, van land tot land, in hulle vermoë om hoër as die koste van kapitaal te verdien en indien dit die geval is met ETW, moet die vraag gevra word of hierdie lande wat negatiewe ETW industriële sektors het, nie daaraan moet dink om daardie besighede te sluit nie. Die ETW berekenings bestaan uit die verlaging van 'n maatskapy se jaarlikse inkomste. Die totale gewig is die koste van kapitaal wat indien positief 'n teken is dat "rykdom" geskep word en indien negatief dat rykdom vernietig word. In hierdie tesis sal die volgende aan die ligkom: die ETW maatstaf is goed in die sin dat dit fokus op die "drumpel"-effek van koste van kapitaal; die wêreld bestaan egter uit baie organisasies wat In lae of negatiewe ETW het, maar wat baie jare suksesvol besigheid doen en wins lewer.