Case Study On The Economic Consequence Of Capital Operation Of Tunghsu Optoelectronic

Capital operation is a common method for enterprises to obtain a rapid growth in performance and complete industrial transformation.In order to obtain a better external financial competitiveness,private enterprises tend to use various capital operation methods to develop a diversified business model for industrial layout.The advantage of diversified operation is that it can not only prevent the company from falling into an operating crisis when its core business loses market competitiveness,but diversify investment risks and then improve the overall profitability of the enterprises.However,with the tightening of the overall financial policy in recent years,companies that rely too much on external funding have been severely impacted.More and more cases of capital operation failures have been exposed continuously in the Ashares market.And the rickets of blindly implementing diversified development are then exposed in the public view.Therefore,obviously the economic consequences of implementing capital operations with the goal of diversification are worthy of research.As a case study object,Tunghsu Optoelectronic had fallen into management puzzledom in twice.The failure of its capital operation was an important reason of the second management puzzledom.Studying its actual economic consequences can provide inspiration and reference for companies that intend to develop diversified operations by capital operation.The thesis is written based on the method of literature research and case analysis.In the part of literature research,this thesis collected literature achievement at home and abroad around capital operation,elaborates the motivation and economic consequences of capital operation.In the theoretical part,the thesis focused on the concept of capital operation which including the concrete content of large-scale economy theory,market power theory and synergistic effect theory.In the part of case analysis,firstly,this thesis summarizes the historical development,ownership structure,capital operation motivation,diversified operation layout and the implementation process of capital operation of Tunghsu Optoelectronic,select the case of bond payment default event on November 19,2019 as the beginning point of the study.This event is a remarkable sgin that Tunghsu Optoelectronic had fallen into management puzzledom once again.Then,during the analysis of economic consequences,the event study method is used to analyze the market feedback of Tunghsu Optoelectronic in each stage of capital operation,and then,the financial index analysis method is used to analyze the performance of business and financial status in the process of capital operation.After the study,the reason of Tunghsu Optoelectronic had fallen into management puzzledom can be concluded: Firstly,blindly developing diversified development while the core competitiveness is seriously lacking;Then,the sources and distribution of operation funds are not reasonable;Finally,the expansion speed is too radical,which leads to the failure of forming good synergistic effect.Based on the analysis above,the thesis draws the following conclusions: First,improving core competitiveness is the foundation of diversified operations;Next,capital operations which rely too much on external financing can only stimulate performance growth in a short term;Last but not least,enterprises should look highly on resource integration and reasonably control the progress of diversified expansion based on the development status.