The Information Contents and Price Discounts of Companies Issuing Global Depositary Receipts

• Main Authors: Hsiao-Chen Wu, 吳曉蓁
• Other Authors: 徐俊明
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/20443240576306561697

碩士 === 國立中興大學 === 財務金融系所 === 98 === This study contains a sample of 57 Taiwan`s public companies that conducted global and domestic equity offerings (i.e., issuing GDRs and SEOs) during 1994-2009. I mainly compare the differences in announcement effects and underpricing (price discounts) between these two groups. The results are summarized as follows. (1) The announcement effects of issuing equity domestically and globally are positive and negative, respectively. The regression results indicate that book-to-market ratio and returns on equity are negatively associated with the announcement effect. (2) The underpricing (price discount) of issuing GDRs appears to be less than that of conducting SEOs, indicating that GDR issuers have better negotiating power.