The study of Determinant of Performance of Taiwanese Companies in Thailand. The research objective is to analyze factors in order to seek investment opportunities and to examine the relationship between these factors and growth rate. Therefore, in this research, the factors which influence Taiwanese firms for relocating and continuing their investment in Thailand will be discovered. This research was based on the exploratory research design.
3.1 The data used in this study
The Department of Business Development (DBD) database is able to provide data on basic companies’ details for free from the DBD website. The information exhibits company establishment category, product category which was grouped into A-Q and each company’s accounting result such as agriculture, fishers, mining, manufacturing etc., was show annual report, finance statement in each companies etc., however, obtain complete in-depth data a purchase must be made from the DBD head office at the price of one baht (0.03 US Dollar) per data item.
The Board of Investment of Thailand’s (BOI) database is available for usage from the BOI website, which has been legally registered and has been supported by BOI. The database reports basic companies’ detail with annual updates on new registered and expansive projects.
Nevertheless, the BOI database could not explore in-depth data such as annual report and financial statements in each company. Furthermore, National Statistical Office’s (NOS) databases are minimum wage, geography, transportation and logistics, Education information
However, when compare the data of 320 companies from DBD’s investment data with the investment promotion application of each company from the BOI during 2008-2012, it was found that none of these companies have applied for investment promotion from the BOI during such time. Besides, the data of the BOI in regard of investment promotion application was divided according to the shareholder’s nationality of each company (according to the law of the alien company registration in Thailand). For example, American Taiwan Bio Pharm Co., Ltd., whose shareholders are Taiwanese and American investors but the quantity of American shareholders are 15 while Taiwanese shareholder is just only 1, therefore, this company was categorized as American nationality. It is assumable that this could be one of the reasons that we did not find the researched companies in BOI data.
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In terms of a qualitative approach, secondary data was collected through the Department of Business Development (DBD) to analyze possible factors that influenced the investment decisions. Furthermore, there was also data collection from the Board of Investment, Thailand (BOI) to support data from DBD, previous related research, online news, journals, articles and government announcements.
3.2 Variables
Figure 3-1 relationship between dependent and independent variable 3.3 Research Methodology
1.
Data analysis and proof of all three hypotheses by studying and analyzing the data of Taiwan direct investment in Thailand from the data of the Department of Business Development (DBD) and using the data on investments from the Board of Investment, Thailand (BOI)to support the data of DBD and previous related research material such as online news, journals, articles and government announcements found in the database of registered Taiwanese companies in Thailand with 2,040 companies all together (with Taiwanese shareholder from 1 person or more). During the years of 2008 to 2012, only 1,455 companies submitted their financial statement to DBD. Moreover, only 218Product categories
X 1
Location ) Region (
X 2
Minimu m wage
X 3
Growth rate investment in 5 years (2008 - 2012)
Y
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companies registered to receive support from the Board of Investment, Thailand (BOI), equivalent to 14.98%, were eligible to be used to analyze the factors, as defined in accordance with the direct investment of Taiwan investors in Thailand. By using location base, product categories and minimum wage to study the relationship between factors and the probability of selecting relocate business in Thailand.
2.
Study on the rates of Return on Asset (ROA) during the years 2008 to 2012 of Taiwanese companies who invested in Thailand. A division into ten business categories indicates the turnover and trends in ongoing investments. A chart format is used for visual and to compare ROA growth rate in each product category.3.4 Data Analysis
The data analysis will be based on Taiwanese companies that invested in Thailand (with Taiwanese shareholder from 1 person or more) during 2008-2012. The analysis method is as follows;
1. Use of Return on Assets (ROA) analysis in each year of the company's growth rate and how the company has introduced a property to gain profit by using the regression analysis.
As given ROAt=
Therefore, ROA2009-ROA2008 = As givenROA2008 = initial value
2. An analysis of the relationship of a given factor and its independent and dependent variables. Independent variables consist of product categories, location (region) and minimum wage. Variables are classified in accordance with industry standards of Thailand in 2009 and use the criteria of International Standard Industrial Classification or ISIC Rev.4. Due to product categories’ resemblance and ability to combine, classification is made with similar industries in the same group and divided into ten major categories in six locations and minimum wages in 77 provinces.
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(2.1) An analysis of the relationship between product categories that affected the decision on locate selection will use the regression analysis lie below:
grROAt
(2) An analysis of the relationship between minimum wage that affected the decision on locate selection will use the regression analysis as follows:
grROAt
(3)An analysis of the relationship between product categories that affected the decision on the selection of minimum wage will use the regression analysis as follow:
grROAt
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