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Investment Decision of the Electronics Industry

Since our current economic environment is getting more and more competitive, enterprises must continuously improve and strengthen their ability in order to maintain their competitiveness. Therefore, investment activities of firms are the key elements to drive business growth. This article tries to discuss whether three different investment dimensions can help to boost firm¡¦s future growth of profitability. This research uses investment spending of listed firms in domestic electronics industry (including capital expenditure, intangible assets and R&D expenditures) as variable to explore the effects of these three investment expenditures on corporate P/B ratio as well as ROA (Return on Asset). This study attempts to analyze whether firm¡¦s investment activities can impose significantly positive influence on its future profitability. We use panel data to run regression analysis and further divide Taiwan electronics industry into five sectors to analyze the effects of firm¡¦s investment expenditure on P/B and future profitability among different sectors. The empirical results show that investment spending imposes significantly positive effect on firm¡¦s profits, but this relationship exist time lags.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0717112-142506
Date17 July 2012
CreatorsKuo, Sheng-cheng
ContributorsChou-Wen Wang, Jen-Jsung Huang, Y. Chris Liao
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0717112-142506
Rightsuser_define, Copyright information available at source archive

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