Behavior and Characteristics of Taiwan''s Institutional Investor: the Case of Convertible Bonds

• Main Authors: Yu, Chia-Ho, 游家和
• Other Authors: Chih-Young Hung
• Format: Others
• Language: zh-TW
• Published: 1997
• Online Access: http://ndltd.ncl.edu.tw/handle/93864321343116992211

碩士 === 國立交通大學 === 科技管理研究所 === 85 === Recently, the high-tech industries in Taiwan are experiencing another cycle of rapid growth. To cope with the increased demand for their products, many high-tech firms are considering dramatic increase in their capital investment. Accompanied with the expansion, there is an urgent need for financing. The investors in Taiwan have gradually accepted the concept of convertible bonds (CB). It is interesting to observe that the CBs issued in recent years have come with various provisions desirable to investors. The purpose of this study is to investigate the preference of institutional investors toward the desirability of the provisions provided in most of the CBs. The industrial buyer behavior model suggested in Sheth (1973) was used in the study as a basic framework in the design of our survey questionnaire.The results of this study show that brokers and underwriters of the CBs are important sources of information for most of the institutional investors. Further, there is preference of those investors toward certain bond covenants.