A Study on the effection of the stock price after the announcement of under price of SEO

• Main Authors: Chi-Chuan Chen, 陳啟川
• Other Authors: Dr.Ying-Shing Lin
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/53220196604417327622

碩士 === 國立高雄第一科技大學 === 財務管理所 === 91 === Because the discouraging performance of Taiwan stock market, many stock prices dropped under their face value, even worse to be as low as only 3 or 4 NTD. Those dump stocks not only were satirized and given sarcastic names such as “Eggs” or “Dumplings” but also had the impact that corporations raised capital by violating the regulations and issuing stocks at the present value. Therefore, after Legislative Yuan of Republic of China revised the article No.140 in Corporate Law, corporations can issue the stock under the face value to solve their financing problems while authorized. Our study mainly focuses on the latest information to discuss the response of the stock price with respect to the issue of the stock by lowering its face value. We selected 7 Taiwan issuing firms in 2002. The study is based on the event analysis. The market model and salvage difference analysis will be adopted to calculate average additional gains and accumulated additional gains. Evidence shows the stock prices fully reflect available information and the capital market is not semi-efficient.