Data Analysis and result

The analysis will be based on the companies which Taiwanese people have one or more people investing in Thailand from2008 to 2012 with the following analytical methods:

1. Use of Return on Assets (ROA) analysis in each year of the company's growth rate and how the company introduced a property to gain profit by using with the regression analysis.

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Table 4-1 uses ROA of the year 2008 as a foundation for growth rate calculation for companies that had Taiwanese involved as investors or partners. Calculation found that if the growth rate was positive (+), that indicated that the company had growth of ROA increased from previous year. For example, company No.2 had ROA in 2008 at 11.77 and 14.92 in 2009, which means that the company that it had an ROA growth increase of 3.15 as it had constant return on assets and continued in the following year (using the current assets to “generate profit” of 14.92 in 2009 and profit increase of 3.15 from the previous year). In contrast, if the growth was negative (-) this means that the company had a decrease in ROA growth rate from the previous year; for example, company No.1 had the ROA value in 2008 at 21.99 and 7.25 in 2009, which made the company ROA growth value decrease at -14.74. That company had a positive ROA, but the ROA growth rate decreased from the previous year. (using current assets to “generate profit” of 7.25 in 2009 and decrease in profit of previous year at 14.74).

Table 4-1: The growth rate of return on asset (ROA) from 2008 to 2012 company

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7 3.34 0.44 3.17 0.15 0.32 (1.7)

8 0.41 1.20 2.24 (2.93) 1.31 (1.8)

9 0.14 3.56 (0.98) 1.60 (0.33) (1.9)

10 0.944 (0.796) 0.510 (0.221) 0.278 (1.10) 11 3.190 (0.956) 1.210 (2.122) 1.289 (1.11) 12 2.324 1.310 (0.848) (1.347) 5.437 (1.12) 13 0.213 0.064 0.033 (0.001) 0.026 (1.13) 14 1.114 0.046 (0.402) 0.267 (0.187) (1.14) 15 2.678 (0.412) (0.296) 0.293 1.263 (1.15)

320 15.439 (2.973) (3.634) 4.537 (1.829) (1.320)

Moreover, in this case the value of Variable Y is the three-year average ROA which is calculated from the sum of ROA since years 2008 to 2010 (a company who showed growth rate in three years), divided by the number of years, with the result being:

(All the result can be viewed from the appendix)

Table 4-2 presents the Pearson correlation coefficients. The result found that the Central region is positively correlated and significant (β=0.880, p<0.05) with a minimum wage per province (Wage P), suggesting that the minimum wage in Central is more than other regions.

Property, plant and equipment of each company in 2008 (log property 2008) is positively

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correlated and significant (β 0.114, p<0.1) with East and West (β 0.114, p<0.1), suggesting that Taiwanese shareholder invest in property, plant and equipment in companies which are located in the East and West more than other regions. Moreover, property, plant and equipment of each company in 2008 (log property 2008) is also positively correlated and significant (β 0.124, p<0.1) with companies established for more than 16 years (age group 16 up), suggesting that Taiwanese shareholders invest in high property, plant and equipment with the firm who had been established for more than 16 years. At last, property, plant and equipment of each company in 2008 (log property 2008) are positively correlated and significant (β 0.240, p<0.05) with the companies which has Taiwanese shareholders owning 100% (num of shareholder (TW) 100%), suggesting that higher property, plant and equipment are associated with companies which have Taiwanese shareholders owning 100%.

Account Receive in 2008 (Account 2008) is positively correlated and significant (β=0.149, p<0.05) with resource seeking, suggesting that higher account receive in 2008 was associated with higher resource seeking. Furthermore, Account receive in 2008 was also positively associated with the region; in the West (β=0.122, p<0.1), companies established for more than 16 years (age group 16 up) (β= 0.157, p<0.1) and property, plant and equipment of each company in 2008 (log property 2008) (β=0.442 p<0.05). At last, Account Receive in 2008 (Account 2008) was positively correlated and significant (β=0.133, p<0.1) with the companies which had Taiwanese shareholders owning 100% (num of shareholder (TW) 100%), suggesting that higher Account Receive is associated with companies which has Taiwanese shareholders owning 100%.

Companies which have Taiwanese shareholders owning 100% (num of shareholder (TW) 100%) are positively correlated and significant with the regions: Northeast (β= 0.111, p<0.1), East ((β= 0.329, p<0.05) and West (β= 0.132, p<0.1), suggesting that the companies which have Taiwanese shareholders owning 100% are located in the East more than the West and Northeast.

The companies which have Taiwanese and other nationality shareholders owning (number of shareholder TW and other) is positively correlated and significant with the regions:

South (β= 0.226, p<0.05), suggesting that higher companies which has Taiwanese and other nationality shareholders owning are located in the South more than in other regions.

39 Table 4-2. Descriptive Statistics

N= 320, ** Significant at the 5% level.

* Significant at the 10% level

Multi-level regression results

Table 4-3 presents the empirical result, in order to reduce complications due to multicollinearity among independent variables, we set control variable and examined the in separate models. In Model 1, only control variables were examined; in Model2, both independent variable and control variables were examined. Therefore, the test found that Model 1 had coefficients of the companies which has Taiwanese shareholders owning 100% (num of shareholder (TW) 100%) with significant positivity (t=1.885). This means that if the companies which has Taiwanese shareholder owning 100% increase, it would result in an increase in average of growth rate (ROA), and if the companies which has Taiwanese and other nationality shareholders owning (significantly positive, t=1.871) increase, it would also result in an increased average growth rate (ROA).

With coefficient values in Model 2, the companies which has Taiwanese shareholders owning 100% (num of shareholder (TW) 100%) showed significant positivity (t=2.051). This means that if the companies which has Taiwanese shareholder owning 100% increased, it would

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result in an increase in average growth rate (ROA), and if the companies which has Taiwanese and other nationality shareholders owning (significantly positive, t=1.927) increased, it would also result in an increased average growth rate (ROA). However, the total incremental explanatory power of Model1 and Model 2 are 23.9% and 29.3% respectively. Moreover, the coefficient value of resource seeking is a significantly negative (t=-2.509) meaning that the Taiwanese companies in the resource seeking category that invested in Thailand have an average growth rate (ROA) within 3 years period lower than that of those in marketing seeking category.

The average of ROA in 3 years = 18.110 + (-1.359) Ln property 2008 + (3.399) resource seeking+ 2.197 number of shareholder (TW) 100%.

B1 = (1.359), value show that if there is 1 more baht investment by Taiwanese companies in Thailand in property, plant and equipment, the average growth rate (ROA) in 3 years period will be decreased by 1.359 baht.

B2 = (3.399) coefficient of investment options by considering type of products for resource seeking, this indicator variable had a value of 1 and 0. This was compared between the company groups that produced resource seeking with the group that did not produce resource seeking, which the test revealed a negative result. This means that the group that marketing seeking firms are performing better than resource-seeking on an average of 3.399.

B3= 2.197 was the comparison between companies group had 100% Taiwanese shareholders with companies that did not. In this part, the B3 value is positive, meaning that if the companies that had 100% Taiwanese shareholder increased by one company, then the average growth rate (ROA) of Taiwan companies that invested in Thailand for three years will increase at an average of 2.197.

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Table 4-3: Examine the factors which affect the growth rate of Taiwanese firms.

Model 1 Model2

Age group (16 up) -0.034 (0.614) -0.028 (0.518)

(log) property 2008 -1.264 (4.383) *** -1.359 (4.624) ***

(log) Accounts 2008 -0.007 (0.117) 0.009 0.151

num of shareholder (TW)100%

0.105 1.885 * 2.197 2.051 **

num of sharehold (TW and Other)

0.102 1.871 * 0.104 1.927 *

resource seeking -3.399 (2.509) **

Wage P -0.076 (1.334)

North 0.015 0.268

Northeast -0.042 (0.775)

Central -0.045 (0.780)

East 0.056 0.980

West -0.018 (0.332)

South 0.018 0.330

Constant 14.448 7.236 *** 18.110 7.789 ***

F 19.211 9.865

R-Square 0.057 0.086

Adjusted R-square 0.054 0.077

Dependent variable: average growth of ROA during 2008-1010.

N= 320, *=p<0.1, **=p<0.05, **=p<0.01 (one-tailed test)

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