The Study of Capital Reduction Effect on Return on Stockholders for Taiwan Listed Companies

• Main Authors: Liu, Chia-Ming, 劉家銘
• Other Authors: Wang, Sue-Fung
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/17255494701450080781

碩士 === 國立交通大學 === 管理學院財務金融學程 === 103 === The aim of this study is to investigate the effects on return on shareholders of capital reduction on the performance of Taiwan listed companies during the period from 2010 to 2014. The empirical results are shown as follows： 1.According to the empirical results of capital reduction on sample company P/E ratio,sample enterprises in overall industries show significant positive relations between cash capital reduction frequency and P/E ratio, which means that the higher the frequency of enterprise capital reduction, the higher the P/E ratio is. Enterprise scales and debts of sample enterprises in the overall industries show significant inverse relations with P/E ratio, which means that the higher the debt of the sample enterprise, the lower the P/E ratio is. 2.According to the empirical results of capital reduction on sample enterprise P/B ratio, the more times a sample enterprise in overall industries conducts capital reduction, the lower the P/B ratio will be, and if the sample enterprise is in high technology industry, the P/B ratio will be lower than non-technology enterprise. Revenue growth and P/B ratio of high technology enterprises show significant positive correlation, which means the higher revenue growth of the high technology enterprises, the higher the P/B ratio will be. 3.According to the empirical results of capital reduction on ROE ratio of sample enterprises, ROE ratio of high technology enterprises are, on average, lower than non-high technology enterprises, and when the operations and cash flow due to operations of the high technology enterprises improve, the ROE ratio will become lower.