The market performance and issuing strategy of Taiwan depositary receipts

• Main Authors: Pi Hua Cho, 卓碧華
• Other Authors: Tsunsiou Lee
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/47479688161565450419

碩士 === 國立臺灣大學 === 財務金融組 === 99 === In order to expand globally, it is common that companies raise capital where their overseas operation sites located. For example, over 140 overseas Taiwanese companies have listed their shares on Hong Kong, Singapore, Thailand and Malaysia capital markets. Foreign companies have accounted for 20%-70% of the total listing companies in London, New York and the nearby Hong Kong and Singapore stock markets. Obviously, it’s a trend for enterprises to list not only on their mother countries but also other well known foreign exchanges. In 2008, Hong Kong was added in as one of the approved exchanges. Together with the loosening of TDR capital utilization, many Hong Kong and Singapore companies have applied for secondary listing on Taiwan Stock Exchange. Total number of TDR listings has increased to 29 since then. These TDRs account for 16% of total shared issued, but the turnover of TDRs are almost equivalent to that of the original shares on their home market. Apparently, TDR market has become the major trading venue for these issuing companies’ shares. This research takes a qualitative and data analysis approach, and found out the price, trading volume and returns on investment of TDRs coincide with those previous academic viewpoints. It is also found that the news release of the TDR issuing at the original markets usually has positive impact on the price movements of its original shares. With reasonable PE ratio, high liquidity, and clustered high-tech companies, the well developed Taiwan capital market has great attraction to foreign enterprises seeking for secondary listing abroad, especially for those companies with similar scale as Taiwan’s listing companies.