| Summary: | 碩士 === 世新大學 === 經濟學系 === 92 === This study examines the relationship of economic value added and financing policies in Taiwan semiconductor industry by incorporating not only one financing policy but also various combinations of diverse financing policies. Since economic value added (EVA) and financing policies are highly related, EVA, as the basis of measuring firm’s value, is used to discuss the relationship of financing policies and stock returns.
In this study, financing policies are divided into four categories: retained earnings, bank loans, corporate bonds and seasoned equity offerings. The data of 47 publicly listing companies in the Taiwan semiconductor industry for the period of 1991-2001 are collected, and the Two Stage Instrumental Variables technique is applied to test the above panel data set. The empirical results are summarized as followed.
1. The relationship of EVA and financing policies:
(1) One financing policy: The value of EVA is positively related to retained earnings, bank loans, corporate bonds, and is negatively related to seasoned equity offering. The financing policies have their significant influences on EVA.
(2) Combinations of financing policies: The value of EVA is positively related to retained earnings, bank loans, corporate bonds, and is negatively related to seasoned equity offering.
2. EVA is positively related to stock returns.
3. The relationship among financing policies, EVA and stock returns:
(1) One financing policy: The stock returns is significantly positively related to retained earnings, bank loans, corporate bonds and significantly negatively related to seasoned equity offering, which indicates that financing policy toes not significantly influence stock returns.
(2) Combinations of financing policies: Stock returns is positively related to retained earnings, whereas it is not significantly related to bank loans, corporate bonds, seasoned equity offering policy. Generally speaking, financing policies are not positively related to stock returns.
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