A STUDY OF ISSUING THE CONVERTIBLE BOND TO THE ROE

• Main Authors: Meng-Kai Huang, 黃盟凱
• Other Authors: 謝劍平
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/69513414561007671450

碩士 === 淡江大學 === 財務金融學系碩士在職專班 === 103 === This research investigating the traded firms issuing convertible bonds (CBs) from 2010 to 2011 in Taiwan, aims to explore the changes between their total assets and ROE, analyze whether a non-linear effect exists between the PBR, leverage, and Earning Per Share (EPS) as variables and ROE, and observe whether those firms'' total assets have smooth transition effect on ROE and the CBs could become a profound factor that changes the ROE. According to the empirical results of this study, the total assets of the firms issuing the CBs have a smooth transition effect on the ROE and a threshold value if found. While the total assets are lower than the threshold value, a positive relation exist between the PBR, EPS and ROE but debt to total assets ratio has no effects on ROE. As the total assets become higher than the threshold value, it is found that only the PBR would affect the ROE negatively. The debt to total assets ratio still has no effects on the ROE while the EPS would affect the ROE positively.