The Effects of Announcement of Private Replacement

• Main Authors: Tsai pei-jung, 蔡珮蓉
• Other Authors: 林鳳儀
• Online Access: http://ndltd.ncl.edu.tw/handle/tcef4t

碩士 === 國立臺北科技大學 === 經營管理系碩士班 === 103 === Most of the studies discuss about the short term announcement effect and the private placement selling with premium or discount. This study not only discuss the short term announcement effect and long run performances, but also explore which factors influence the cumulative abnormal average returns of emerging market in Taiwan and Hong Kong. The event study and ordinary least squares are applied. The results are as follows. Firstly, Taiwan’s announcement effect arouse earlier before the announcement day. Corporate valuation hypothesis supports that cumulative abnormal average returns is 0.06% from three days before the announcement day to the announcement day. Under monitoring effect, 250 days after the announcement day, cumulative abnormal average returns is still positive. Secondly, under-react hypothesis supports that cumulative abnormal average returns is 2.3% from one days before the announcement day to three days after announcement day in Hong Kong. However, investors are too optimistic about the performance of the private company, cumulative abnormal average returns is negative in the long run. Thirdly, Taiwan’s short term and long term CAR are negatively related with R&;D Ratio(RD), and positively related with return on equity(ROE). Finally, Hong Kong’s short term and long term CAR are positively related with return on equity(ROE).