The Impacts factors of Euro Convertible Bond on Firm Characteristics and Premium

• Main Authors: Su-fang Wang, 王素芳
• Other Authors: Chung-Jen Fu
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/93353349162729887643

碩士 === 國立雲林科技大學 === 企業管理系碩士班 === 92 === Overseas financing has become an important issue on corporate financial planning. After Taiwan joins the World Trade Organization, enterprises not only have to face the challenges of productions, but also to extend their financial planning. This thesis tries to study the companies on TSEC and OTC in 2003, issuing Euro-Convertible Bonds as their overseas financing commodities, their financial characters and impacts on conversion premium. The empirical research shows the following results： 1. Issuing Euro-Convertible Bonds electronic industry companies only the profit margin ratio is higher than industry average, but banking industry performances on total asset turnover ratio, profit margin and earnings per share are all better than industry average. 2. On single regression, corporate crediting rate, profit margin and earnings per share of issuing Euro-Convertible Bonds companies have positive and significant impact on conversion premium. 3. If we regress issuing companies’ all financial characters on conversion premium, only corporate crediting rate is significant, others are not. It seems relating to total asset turnover ratio has high correlations with profit margin and earnings per share. From the financial characters of issuing Euro-Convertible Bonds electronic companies, we know that corporate does not have the financial need on expanding factory building. Thus we have to clarify the motives of issuing Euro-Convertible Bonds electronic companies. In addition, the financial characters on conversion premium have 42 percent R-square performances, which means they have great influences on conversion premium. But the high correlation among variables causes variables insignificant such as earnings per share. Further research should avoid this kind of operation.