Estate massing is one of the estate planning instruments used by estate planners, especially with regards to marriages in community of property; nonetheless any two people (or more) may mass their whole estates or a part thereof. Section 37 of the Administration of Estates Act describes massed estates and therefore it also supplies the requirements for estate massing and will be explored in this study. Estate massing gives rise to tax consequences that would not have arised normally. Due to estate massing there will be tax consequences for the predeceased testator and the surviving testator(s) and even in some cases there will be tax consequences for the heirs. In this study, attention is paid to the tax consequences of estate duty, donations tax, transfer duty, VAT and CGT. The purpose of this study is to determine the difference between the consequences of estate massing should it happen in accordance with the requirements of the Administration of Estates Act and should it not happen in accordance with the requirements of the Administration of Estates Act. / LLM (Estate Law), North-West University, Potchefstroom Campus, 2013

Submitted in fulfillment of the requirements of the Degree of Master of Technology: Cost and Management Accounting, Durban University of Technology, 2014. / Economic Value Added (EVA) is a value based accounting measure used by companies to measure the amount of value created for shareholders. Accounting values derived from company annual financial statements (AFS), are used to calculate EVA. EVA requires the conversion of accounting values to economic values. This conversion process is known as the EVA adjustment. If accounting values are not converted to economic values, the value of the EVA can be distorted. Previous studies have shown that companies are experiencing difficulties in implementing EVA adjustments. To reduce these difficulties, companies have decided to limit their EVA adjustments to ten or even fewer. The problem is that if the appropriate adjustments are not made, an inaccurate EVA measure will be calculated. The aim of the research was to measure the impact of deferred taxes on the EVA measure. The study was conducted within a quantitative research paradigm. Secondary data analysis was carried out on JSE-listed Food producers and Retailers over a seven-year period, from 2004 to 2010. The unadjusted EVA was compared to the adjusted EVA measure to determine the before and after effects of deferred taxes on EVA. The findings of the study revealed that deferred taxes either understated or overstated the value of the EVA during 2004 to 2010. In addition, the results from the regression analysis revealed an overall significance for all deferred tax predictors. The regression results showed that deferred taxes significantly impacted the value of EVA. The study recommends that companies implement the deferred tax adjustment on the EVA measure.

Thesis (MBA)--Stellenbosch University, 2000. / The investing public seeks to have knowledge on the future and anticipated enterprise performance. The starting point for gathering such information is presented in the enterprise financial statements. Secondary data presented by the Business School of the University of Stellenbosch was used. The study focused on finding out the magnitude of reporting cash flows from operating activities using the indirect or direct methods. The study also checked the frequency of reporting value - added statements, and took a forecast view on what the reporting nature is expected to look like in the next financial year-end. The database used in the study included 655 listed and delisted industrial companies in the Johannesburg Stock Exchangeover the ten-year period starting from January 1990 through to December 1999. It is noted that the South African Institute of Chartered Accountants, as stated in Statement AC 118, encourages enterprises to report cash flows from operating activities using the direct method. This is because the direct method provides information which may be useful in estimating future cash flows and which is not available under the indirect method. The study noted the rate at which newly listed enterprises report their initial cash flow statements, and the rate at which enterprises listed before 1996 are changing from reporting using the indirect method to the direct method. The results showed that at present South African enterprises are reporting cash flows from operating activities at a higher rate that in other notable Western Countries subscribing to the doctrines of the International Accounting Standards Committee (IASC). The number of enterprises presenting value - added statements has shown an increase, though reporting value - added statements is not yet statutory. For the forecasting exercise part of the study, Brown's linear double exponential smoothing technique was applied.

In den letzten Jahren sind die gesellschaftlichen Ansprüche an die Waldnutzung deutlich gestiegen. Den begrenzten Produktionsmöglichkeiten des Waldes stehen vielfältige, teilweise konkurrierende Nutzungsansprüche gegenüber. Die vielfach geforderte Balance aus ökologischem, ökonomischem und sozialem Nutzen kann unter Umständen im Zuge der multifunktionalen Waldwirtschaft zukünftig nicht mehr auf ganzer Fläche erbracht werden. Unter den vielen verschiedenen gesellschaftlichen Nutzungskonflikten waren und sind insbesondere die Nutzungskonkurrenzen zwischen Holznutzung (Forst- und Holzwirtschaft) und Nutzungsverzicht (Naturschutz) in den letzten Jahren von zentraler Bedeutung. Vor diesem Hintergrund ist das Ziel dieser Arbeit die Entwicklung und Anwendung von Methoden zur Bewertung der naturalen und ökonomischen Auswirkungen von Nutzungskonkurrenzen zwischen der Forst- und Holzwirtschaft und dem Naturschutz. Hierfür werden die folgenden wissenschaftlichen Fragestellungen bearbeitet: (1) „Welche Auswirkungen haben aktuelle naturschutzfachliche Maßnahmenplanungen auf die Forstwirtschaft?“ und (2) „Welche Auswirkungen hat der veränderte inländische Holzeinschlag auf die Holzindustrie?“ Die Methoden und Ergebnisse der vorliegenden wissenschaftlichen Arbeit zur Bewertung von Nutzungskonkurrenzen wurden in drei peer-reviewten und zwei weiteren Artikeln in forst- und holzwirtschaftlichen Fachzeitschriften veröffentlicht.

Thesis (MAcc (Accountancy))--University of Stellenbosch, 2006. / The advent of the internet made it possible to conduct business in a different manner - electronically. Electronic commerce enables residents and vendors to transact with residents and vendors of any other country (jurisdiction) at any time, making the world indeed a smaller place. Electronic commerce has, however, raised many questions internationally. Determining the effect of such transactions on the tax take of a country is of great importance to a government. The South African Revenue Service adjusted the Income Tax Act in order to take globalisation into account in accordance with international direction. In contrast, no changes have been suggested for the indirect taxation, namely value added tax. Electronic commerce were not contemplated when the Value-Added Tax Act was introduced in 1991. The charging section (section 7 of the mentioned act) provides that a transaction will be taxed in South Africa on the supply of goods or services, on the import of goods and on the supply of an imported service. In traditional business the place of supply was easy to define because a pure consumption test could be applied: namely that the place of supply is where the goods or services have been consumed. Today this rule will put an enormous compliance burden on vendors since the physical place of consumption in electronic commerce is not that obvious (Masters, 2001). Not only must the precise place of supply be determined but the vendor also has to value the supply in multiple jurisdictions. This study highlights the applicable sections of the Value-Added Tax Act and applies it to electronic commerce in order to determine if the existing legislation should be modernised or if parts of it needs to be re-written. The following concepts will be considered: • Place of supply in order to determine the jurisdiction where tax must be charged. • Value of supply to determine the value on which tax must be charged. • Vendor to determine which entities, South African or otherwise, have to register for VAT in South Africa. • Goods. • Services to consider goods and services of digital content. The international initiatives regarding the application of consumption tax, under the leadership of the Fiscal Committee of the Organisation for Economic Co-operation and Development, were taken into account in the study of any required amendments to sections of the Value-Added Tax Act. A group, “The Consumption Tax Technical Advisory Group”, was established in January 1999 by the OECD to consult with business and non-members on the implementation of consumption tax on electronic commerce transactions. The composition of the group is representative of the main trading nations in the world, but also includes smaller countries, non-members and private sector participants. It includes Australia, Japan, the United Kingdom, the United States of America and the European Commission. Considering the global composition of the group this study will focus on the initiatives of the OECD and it is not deemed necessary to investigate the initiatives of individual countries. The study will however consider the research and initiatives of South Africa’s biggest commercial partner, the European Union (OECD, 2004a: 285). The South African initiatives regarding electronic commerce include the Green Paper on Electronic Commerce released by the Department of Communication in November 2000 and the Electronic Communications and Transactions Act promulgated on 26 June 2002. The legislation does not address the tax implication of electronic commerce but in chapter 4 of the mentioned green paper it was discussed by the legislators. There is growing international pressure to lower corporate income tax rates. As the tax base erodes in this area other sources, possibly consumer taxation, must be found to meet the shortfalls (Masters, 2001). It is the aim of this study to show that the present Value-Added Tax Act is in need of modernisation in order to take into account the wide range of electronic commerce transactions.

Thesis (MAcc)-- Stellenbosch University, 2014. / ENGLISH ABSTRACT: Section 12 of the Value-Added Tax Act No. 89 of 1991 (hereafter referred to as the VAT Act) determines that the supply of certain goods and/or services are exempt from value-added tax (hereafter referred to as VAT) levied by section 7(1)(a). One such exempt supply is the supply of educational services by certain institutions (listed in section 12(h)(i)(aa)-(cc)). Section 12(h)(i)(bb) determines that the supply of educational services by an higher institution are specifically exempt from VAT. The term “educational services” is not defined in the VAT Act. Uncertainty exists in practice about what exactly educational services comprise and what the scope of it is. Since the supply of educational services is an exempt supply in terms of section 12(h)(i)(bb), a clear and irrefutable definition of “educational services” should exist. Two of the main purposes of an university is to deliver education of exceptional quality and good research outputs. The primary question that originates is whether the research performed by an university qualifies as an exempt supply with the result that the performance of research is an exempt supply. The term “research” was investigated in several sources and it was found that research can be generically be defined as the systematic investigation of existing knowledge and the creation of, amongst others, new knowledge and inventions. Furthermore, it was found that research can be divided into two categories, namely research performed at no consideration and research performed at consideration. Research performed at consideration is further divided into two subcategories, namely commercial research (where the purpose is to generate income) and non-commercial research (where the purpose is research). The definition of “educational” and other bent forms of the term “educate”, amongst others, “education” and “educator” were investigated in relevant South African legislation, case law and international legislation and case law. Commercial research is considered to be a supply of a business activity of a university with the main objective of generating income and is considered as a taxable supply in the case law of the United Kingdom and Canada. Non-commercial research is considered as supplies in the course or furtherance of an enterprise, but the main purpose of the enterprise is not to generate income. Non-commercial research is considered as an “educational service” since it meets the requirements of systematic instruction of education and learning. This type of research is exempt from VAT levied. The input tax of any costs incurred with regards to this type of research will not be claimable. It is suggested that the principles highlighted in this study might clear up the confusion surrounding whether research performed by an university qualifies as an exempt supply or not. SARS could possibly establish guidelines to determine when research is considered exempt or taxable. This information could be useful for role players in the South African tax environment if the matter arises. / AFRIKAANSE OPSOMMING: Artikel 12 van die Wet op Belasting op Toegevoegde Waarde No. 89 van 1991 (hierna verwys as die BTW-wet) bepaal dat die lewering van sekere goed en/of dienste van die heffing van belasting op toegevoegde waarde (hierna verwys as BTW) wat deur artikel 7(1)(a) opgelê is, vrygestel is. Een sodanige vrygestelde lewering is die lewering van opvoedkundige dienste deur sekere instellings (gelys in artikel 12(h)(i)(aa)-(cc)). Artikel 12(h)(i)(bb) bepaal dat die lewering van opvoedkundige dienste deur ’n inrigting wat hoër onderwys verskaf, spesifiek van BTW vrygestel is. Die term “opvoedkundige dienste” word egter nêrens in die BTW-wet gedefinieer nie. Daar bestaan dus onsekerheid in die praktyk oor wat presies opvoedkundige dienste behels en wat die omvang daarvan is. Aangesien die lewering van ’n opvoedkundige diens ’n vrygestelde lewering ingevolge artikel 12(h)(i)(bb) is, moet daar dus ’n duidelike en onweerlegbare omskrywing van “opvoedkundige dienste” bestaan. Om onderrig van uitmuntende gehalte en goeie navorsinguitsette te lewer is twee van ’n universiteit se hoofdoelwitte. Die primêre vraag wat gevolglik ontstaan is of die uitvoer van spesifiek navorsing, deur ’n universiteit kwalifiseer as die lewering van opvoedkundige dienste met die gevolg dat die uitvoer van navorsing ’n vrygestelde lewering is. Die term “navorsing” is in verskeie bronne ondersoek en daar is bevind dat navorsing generies gedefinieer kan word as die sistematiese ondersoek van reedsbestaande kennis en die skep van, onder andere, nuwe kennis en uitvindings. Daar is ook verder bevind dat navorsing in twee kategorieë verdeel kan word, naamlik navorsing uitgevoer teen geen vergoeding en navorsing uitgevoer teen vergoeding. Navorsing uitgevoer teen vergoeding word verder in twee subkategorieë onderverdeel in kommersiële navorsing (waar die generering van inkomste die hoofdoel is) en nie-kommersiële navorsing (waar navorsing die hoofdoel is). Die definisie van “opvoedkundige” en ander verbuigde vorme van die term “opvoed”, onder andere, “opvoeding” en “opvoeder”, is ook in relevante Suid-Afrikaanse wetgewing, regspraak en internasionale wetgewing en regspraak ondersoek. Kommersiële navorsing word as deel van die besigheidsaktiwiteite van ’n universiteit met die hoofdoel as generering van inkomste en dus as ’n belasbare lewering in die regspraak van die Verenigde Koninkryk en Kanada beskou. Nie-kommersiële navorsing word ook beskou as lewerings wat in die loop of ter bevordering van die onderneming gelewer word, maar die hoofdoel van hierdie onderneming is nie die generering van inkomste nie. Nie-kommersiële navorsing word dus beskou as ’n “opvoedkundige diens”, aangesien dit voldoen aan die vereiste van sistematiese instruksie van onderrig en leer. Hierdie tipe navorsing is dus vrygestel van die heffing van BTW. Enige onkoste aangegaan met betrekking tot hierdie tipe navorsing se insetbelasting sal dus ook nie eisbaar wees nie. Dit word aan die hand gedoen dat hierdie studie beginsels uitlig wat die verwarring rondom of navorsing gelewer deur ’n universiteit ’n vrygestelde lewering is of nie, moontlik kan opklaar. Die SAID kan moontlike riglyne daarstel van wanneer navorsing beskou word as vrygestel of belasbaar. Hierdie inligting kan moontlik van nut wees vir rolspelers in die Suid-Afrikaanse belastingomgewing indien die kwessie na vore tree.

Thesis (MBA)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: The publication of the Value Added Statement should be seen as an attempt to introduce financial results to all the stakeholders of an organisation that aided in its wealth creation process. However, the current practice to present Value Added Statements in a variety of ways is not conducive to financial analysis and users of the information find it difficult to compare company results. The information on the Value Added Statement provides useful knowledge of the contribution of employees and fixed assets, the relative relationship of dependency and control between the organisation and its suppliers and the long-term requirements of the organisation to meet market demands. This study project aims to determine if value added-based ratio analysis could be used to measure company strength and be useful as a tool in corporate strategy formulation. The areas of investigation included productivity of production factors, reinvestment in capital and overall business control. The measures used to determine productivity also provided insight into the capital and labour intensity of companies and sectors. The model that was developed in this section indicates how companies differ in terms of their intensity and how productive their production factors are. It was found that although some companies were able to exert high value added to sales ratios, they did not perform as well when their productivity levels were measured. This is an indication that an imbalance exists between the current production factor proportions and management should try to find the optimal solution for increased productivity. The search for the optimal point between labour and fixed assets could convince management to reduce employee numbers or fixed assets to increase their productivity ratios. This is not a favoured approach as companies are dependent on their production factors for continuous growth and prosperity. The aim is to determine if companies have the means to invest in their production factors to increase their levels of productivity. Reinvestment in capital refers to fixed assets, as well as investment in training and development of current employee skills. The investigation revealed that many companies have the ability to reinvest, while others appear to be in a less favourable position. The last section was an attempt to measure the overall business control of companies when their margins on sales and value added were compared. These ratios provided insight into the ability of companies to add value through their own production skills or by command of lucrative contracts with suppliers. Those companies that are able to show high values on both ratios are said to display a high degree of overall business control. In conclusion it was found that value added-based ratio analysis could be used to identify problem areas in corporate strategy. Management's reaction to those areas and their continuous drive to improve value creation in the organisation would eventually lead to increased national wealth creation. / AFRIKAANSE OPSOMMING: Die publikasie van die Staat van Toegevoegde Waarde moet gesien word as 'n poging om finansiële resultate aan alle belanghebbendes van 'n organisasie, wat bygedra het tot die proses van welvaartskepping, aan te bied. Die huidige praktyk om die Staat van Toegevoegde Waarde op verskeie maniere aan te bied is egter nie bevorderlik vir finansiële analise nie en gebruikers van die inligting vind dit moeilik om maatskappy resultate te vergelyk. Die inligting op die Staat van Toegevoegde Waarde verskaf waardevolle kennis oor die bydrae van werknemers en vaste bates, die relatiewe verhouding van afhanklikheid en beheer tussen die organisasie en sy verskaffers en die langtermyn behoeftes van die organisasie om aan markverwagtinge te voldoen. Hierdie studieprojek poog om vas te stel of toegevoegde waarde gebaseerde verhoudingsanalise gebruik kan word om maatskappyvermoë te bepaal en of dit 'n nuttige instrument in korporatiewe strategieformulering kan wees. Die areas van ondersoek het die produktiwiteit van produksiefaktore, herinvestering in kapitaal en algehele besigheidsbeheer ingesluit. Die maatstawwe wat gebruik is om produktiwiteit te bepaal het ook insig gegee oor die kapitaal- en arbeidsintensiteit van maatskappye en sektore. Die model wat ontwikkel is in hierdie afdeling wys hoe maatskappye verskil in terme van hul intensiteit en hoe produktief hul produksiefaktore is. Dit is gevind dat, alhoewel sommige maatskappye in staat was om hoë waardes vir die toegevoegde waarde tot verkope verhouding te openbaar, hulle nie so goed gevaar het toe hul produksie vlakke gemeet is nie. Dit is 'n aanduiding dat 'n wanbalans bestaan tussen die huidige produksiefaktor verhouding en bestuur moet probeer om 'n optimale oplossing te vind vir verhoogde produktiwiteit. Die soeke na die optimale punt tussen arbeid en vaste bates kan bestuur oortuig om werknemer getalle of vaste bates te verminder ten einde hul produktiwiteitsverhouding te verbeter. Dit is nie die aangewese benadering nie aangesien maatskappye afhanklik is van hul produksiefaktore vir volgehoue groei en welvaart. Die doel is om te bepaal of maatskappye die middele het om te investeer in hul produksiefaktore ten einde hul vlakke van produksie te verhoog. Herinvestering in kapitaal verwys na vaste bates, sowel as investering in opleiding en ontwikkeling van bestaande werknemer vaardighede. Die ondersoek het openbaar dat baie maatskappye wel oor die vermoë beskik om te herinvesteer, terwyl ander blyk om in 'n minder gunstige posisie te wees. Die laaste afdeling was 'n poging om die algehele besigheidsbeheer van maatskappye te bepaal wanneer die marge op verkope en toegevoegde waarde vergelyk word. Hierdie verhoudings bied insig oor die vermoë van maatskappye om waarde toe te voeg deur hul eie produksievaardighede of deur middel van winsgewende kontrakte met hul verskaffers. Maatskappye wat in staat is om hoë waardes vir beide verhoudingsgetalle te openbaar word beskou as maatskappye met 'n hoë algehele besigheidsbeheer.

In the wake of growing database that has already become the trend of today’s business environment within the foreseeable future, reviewing quality information from mountains of data residing on corporations or organizations’ network such as sales figures, manufacturing statistics, financial data and experimental data is clearly costly, time consuming and definitely ineffective approach. Therefore we would need a sound and effective method in obtaining only portions of the data that are representative to the population and which allow us to build the reliable model based upon the sampled data. However, sometimes we have a situation where the database is of limited in size, under such circumstance, we initiate the idea which is relatively new to adding the attributes or values into the database to enhance the quality of the data Follow through such a procedure; it is obvious that implementing a good sampling method is an important groundwork leading us to reach final destination that is obtaining a reliable predictive model. And this is our research goal that is to get an effective and representative value-added sample of by means of sampling method for building an accuracy predictive model. The concept is pretty straightforward that is if we want to get good predictive samples then we need the correct sampling methods. The sampling methods under study are simple random sample, system sample, stratified sample and uniform design. The models used are the C5.0, logistic regression, and neural network for categorical predictive variable and stepwise regression for continuous predictive variable. The results are discussed in the conclusion section. Keywords: Database、Data Mining、Sampling、Value-added database

資料在企業資訊來源中扮演了極為重要的角色，特別是在現今知識與技術的世代裡。如果對於一個有意義且具有代表性資料庫中的遺漏值能夠正確的處理，那麼對於企業資訊而言，是一個大有可為的突破。 然而，有時我們或許會遇到一些不是那麼完善的資料庫，當資料庫中的資料有遺漏值時，從這樣資料庫中所獲得的結果，或許會是一些有偏差或容易令人誤解的結果。因此，本研究的目的在於插補遺漏值為資料庫加值，進而根據遺漏值類型建立插補模型。 如果遺漏值為連續型，用迴歸模型和倒傳遞類神經模型來進行插補；如果遺漏值為類別型，採用邏輯斯迴歸、倒傳遞類神經和決策樹進行插補分析。經由模擬的結果顯示，對於連續型的遺漏值，迴歸模型提供了最佳的插補估計；而類別型的遺漏值，C5.0決策樹是最佳的選擇。此外，對於資料庫中的稀少資料，當連續型的遺漏值，倒傳遞類神經模型提供了最佳的插補估計；而類別型的遺漏值，亦是C5.0決策樹是最佳的選擇。 / Data plays a vital role as source of information to the organization especially in the era of information and technology. A meaningful, qualitative and representative database if properly handled could mean a promising breakthrough to the organizations. However, from time to time, we may encounter a not so perfect database, that is we have the situation where the data in the database is missing. With the incomplete database, the results obtained from such database may provide biased or misleading solutions. Therefore, the purpose of this research is to place its emphasis on imputing missing data of the value-added database then builds the model in accordance to the type of data. If the missing data type is continuous, regression model and BPNN neural network is applied. If the missing data type is categorical, logistic regression, BPNN neural network and decision tree is chosen for the application. Our result has shown that for the continuous missing data, the regression model proved to deliver the best estimate. For the categorical missing data, C5.0 decision tree model is the chosen one. Besides, as regards the rare data missing in the database, our result has shown that for the continuous missing data, the BPNN neural network proved to deliver the best estimate. For the categorical missing data, C5.0 decision tree model is the chosen one.

隨著台灣加入WTO的無關稅障礙及全球化的無國界政策，台灣傳統產業面臨的營業環境，將從國內轉變為國際化的競爭，企業體不能奢望在政府的保護傘下從事營利活動，應順應時代的潮流，從事合併的工作，從世界著名重電機廠商ABB及Schneider最近幾年相繼併購小廠，證明傳統產業為了生存，併購是必經的途徑。 本文以價值衡量觀點出發，以經濟附加價值（EVA）為公司價值之衡量指標，實證結果發現： （一）提高資產週轉率、降低進貨成本，確有助創造企業價值提升。 （二）銷售成長率、加權平均資金成本與企業價值不相關。 （三）現金稅率愈高，企業價值愈高。 （四）增加投入資本反而有損企業價值，爰此引證，傳統產業應注重資產的管理，而不是一昧的追求營收的成長，對於未能賺取正的超額報酬率的產業，不當的投資及營收成長，反而造成企業價值的不增反減效果。 本研究再以能增加企業價值的財務因子，以進貨/營收作規模經濟效益分析及以資產週轉率作效率分析發現，與樂士電機、東元電機、亞力電機、士林電機公司合併後，分別增加的營運綜效為102%、65%、17%、4%，爰此證明，合併確能增加綜效，也是目前環境下企業價值創造必經的過程。 從財務報表發現，最近三年重電機產業營運紛紛虧損、投資報酬率低於資金成本、產能過剩、資產週轉率偏低的情況下，如維持現況即是在耗損企業價值，企業應將價值納入規劃中，瞭解價值驅動因子，建立以價值導向的管理系統，朝向內部改善及外部改善，以水平合併的方式，勿支付超額成交溢酬，管理併購後的整合工作，創造潛在的企業價值。 / Joins WTO along with the non-customs duty barrier and the globalization non-national boundary policy, the business running environment for Taiwanese traditional industry will extend from domestic to global competitions. The enterprises cannot hope to seek and make profit under government's protection. They should follow the trend to engage in the merger work. Within these several years the world famous heavy electric machinery companies ABB and Schneider continue to merge and acquire the small factories and companies, which proved that merger and acquisition are the essential ways for the traditional industry to survive. This paper based on the viewpoint of the value measuring, and used Economic Value Added (EVA) as the benchmark. The study results are: 1. Increasing asset turnover and reducing costs is helpful to create the enterprise value. 2. Sales growth rate, the weighted average cost of capital (WACC), and the enterprise value are not related. 3. The higher the tax rate, the greater the enterprise value. 4. Rising invested capital will harm the enterprise value. The evidences show that the traditional industry must pay great attention to the asset management, not only focus on sales growth. Regarding those unable to earn economic profit industries, the improper investments and the sales growths will cause the destroying the enterprise value instead of enhancing. Our studies also use the financial factors to increase the enterprise value. Using cost/sales to do economic scale and benefit analyses and using asset turnover to do efficiency analyses, we discovered that after merged and acquired with LUX Electric Co., TECO Electric Co., ALEX Electric Co., and Shih-Lin Electric Co, the operating synergies for each company grow up 102%, 65%, 17%, and 4% individually. The evidences prove that merger could increase the synergies. It is the path for the value creation under the present environment. From the financial statement we could find out that in the pass three years heavy electric machinery industry companies lost money one after another. The return on invested capital is lower than cost of capital. Because of surplus production and low asset turnover, to maintain the companies’ present situation is consuming the enterprise value. The enterprise should put the value into planning, understand the drivers of value, and develop value-oriented management system for the internal and external improvements. Enterprises could use horizontal mergers, not over premiums paid, to manage post-merger integration and create the potential value.