Corporate value and Cash holding: In the case of capital reduction of Chunghwa Telecom

• Main Authors: Wei-Chih Hung, 洪尉植
• Other Authors: Joseph C.P. Shieh
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/38076720005043577469

碩士 === 國立臺灣科技大學 === 財務金融研究所 === 102 === This paper consist of mainly three parts: First of all, it investigates the factors that will influence corporate cash holdings. Second, it tested that whether the company which decided to hold more cash holdings can really increase its value. Third, using Chunghwa Telecom's asset activation process, which consist of mainly using additional paid in capital to add additional share and a further capital reduction, showing that how companies should deal with their overwhelming cash holdings on hand. The results show that cash flow, debt, company value given by the market, company size and intangible assets are the factors that influence Taiwanese company to hold cash. And by holding more cash Taiwanese company can really increases its value. At last, in the case of Chunghwa Telecom, we show that amount all the ways of activating assets, using cash dividends and capital reduction with the process of transferring additional paid in capital to capital increase will be the best choice when it comes to risk and returns.