| Summary: | 碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 97 === This study attempts to investigate the impact of the announcement effect of domestic convertible bonds pronounced on the stock prices of the 187 companies. This work also explores the relationship between the abnormal rate of return and the financial characteristics of the convertible bonds issuing companies during the period from 1990 to April, 2008.
The company''s financial characteristics, company size, conversion premium, asset-debt ratio, operating net profit, growth rate of main business are picked as independent variables, then a regression analysis is employed.
The empirical results are summarized as follows:
1.the larger the company, the greater the cumulative abnormal return, we can see in our larger companies tend to issue more convertible bonds.
2.the conversion premium associated with negative abnormal returns, that is the greater the conversion premium, the smaller the company abnormal return, which opposite of the signal model, Brennan and Kraus (1987).
3.asset-debt ratio negatively correlated with the abnormal return, that is, the greater asset-debt ratio, the company abnormal return smaller. Taiwan''s investors more cautious on the high asset-debt ratio are not optimistic about the company, which may be related to many poor credit business loans, banks related to a large number of non-performing loans.
4.the operating net profit rate and abnormal returns negatively correlated, that is, the greater the net profit margin business, the smaller the cumulative abnormal return, which may be due to early operating profit margins in good but the issuance of convertible bonds is not very successful , and investors may be more important prospects for the future development.
5.the greater the growth rate of main business, the greater the cumulative abnormal return, the result shows that convertible bonds for a high growth company of particular value, is also in accordance with the interests of the backdoor equity financing hypothesis.
|
|---|
