Abstract
To be an island country, Taiwan is really poor in natural resources and human resources.So Taiwan has being a technology export countries, especially the Hsinchu Science Park, almost every technology companies are oriented to research and development. In 2012, the most R&D funding company, TSMC is 38.8 billion dallars, followed by HTC, 13.8 billion dollars and MediaTek, 13.1 billion dallars,In 2014, TSMC's R & D expenditures increase to 616 billion dollars, MediaTek also up to 47.047 billion dollars,so R & D expenditure really show its important status in taiwan company. These are five degree, which can be put into Fama – French Model, in R&D expenditure et al Louis K.C.Chan, It can help manager to judge the measure of excess profit. The results of paper show that the R&D indeed has influenced on excess profit. In addition, the research of Lin. M. L. (2005) shows that R&D has effects on business performance and equity evaluation under Taiwan electronic information industry. Similarity, this thesis using this method to observe that the effect of R&D with excess profit, 829 company from 2005 to 2014. We also combine the model which provides by Kuo Q. X. (2013), which modify the model proposed by Olhson J.A. (1995).