Continual equipment investment is the only option for all global semiconductor manufacturers?

MUIR > College of Business and Management > Department of Public Finance > Conference Papers > Item 987654321/1960

Please use this identifier to cite or link to this item: http://ir.meiho.edu.tw/ir/handle/987654321/1960

Title:	Continual equipment investment is the only option for all global semiconductor manufacturers?
Authors:	Mo, Ching-Wen Chang, Tsangyao
Keywords:	Panel-unit root test Panel threshold regression
Date:	2012-10
Issue Date:	2012-11-18T03:01:40Z (UTC)
Abstract:	In this paper, we focus on the semiconductor manufacturing industry and investigate whether the firms sales growth and their Return on Equity (ROE) have an asymmetric nonlinear relationship in different debt ratio regimes by using financial statement-based data and employing a more powerful panel threshold regression model developed by Hansen (1999) over the 1999 first quarter (1Q) to 2005 third quarter (3Q) period. The result shows that there exists a double threshold effect and that the threshold values of debt ratio are 1 ˆ  0.4935 and 2 ˆ  0.6847. When the debt ratio is below 68.47%, ROE will be increased by continual equipment investment. However, when the debt ratio is above 68.47%, ROE will be decreased by continual equipment investment. These findings could be valuable for both the market investors to search their target of investment and corporation managers who can utilize them to adjust their production strategy and investment decision for increasing their business performance.
Appears in Collections:	[Department of Public Finance] Conference Papers

Files in This Item:

File	Description	Size	Format
Continual equipment investment is the only option for all global semiconductor manufacturers.pdf		371Kb	Adobe PDF	3616	View/Open

View Licence