The Study on Issuance Announcement Effect of Convertible Bond-An Empirical Evidence of Taiwan Listed Stocks

• Main Authors: Wei-Cheng Wen, 溫韋程
• Other Authors: Yun-Yung Lin
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/58837795427864981710

碩士 === 淡江大學 === 財務金融學系碩士在職專班 === 95 === In this study the firms that issue convertible bonds in the open traded and over-the counter markets were used as sample. In addition, we employed the Market model research method to explore the effect of the announcement of issuing convertible bonds on the stock price in the issuance date. In this study we discussed not only the influence of the issuance of convertible bonds on stock returns, but also its impact on companies with different profitability and profitability growth, and on various kind of industry. Our study result differs from previous work in at least two aspects. The result reveals that there are significantly negative abnormal returns on the board meeting date, but there are not on the issuance date. The study also shows that the effect on companies with different profitability, profitability growth, and various kind of industry were not significant.