A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1991

Among technology-related issues, high technology areas are one of the high lights. There were many discussions on the management of high technology industries. But, only a few discussed on financial perspectives. This research attempts to identify financial characteristics existing in high tech areas by conducting a comprehensive comparison between high tech and nonhigh tech companies in Taiwan. The author applied the tools of financial ratio analysis and some statistical techniques such as T- test, factor analysis and discriminant analysis to identify the differences, similarities and the degree of importance among the significant variables between high tech and non- high tech companies. The results of this research show that there are significant differences on profitability, liquidity, fixed assets turnover, receivables, inventory, productivity and P/ E ratio, and there are not much differences on capital structure and sales growth rate between high tech companies and non- high tech companies in Taiwan. High liquidity, receivables, inventory, P/E ratio and assets turnover have been proved as the financial characteristics existing in Taiwan's hightech companies. Combining with other characteristics in high tech areas such as the rapid change in technology, the market, products, higher proportion of skilled employees, higher R&D expenditures and short product life cycles, the results of this research can provide the management some useful information for decision making.