The Relationship between Corporate Governance, Capital Reduction and Stock Returns

• Main Authors: LU,ZHONG-HUI, 陸仲輝
• Other Authors: HUANG, PAO-YU
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/xtc8ay

碩士 === 東吳大學 === 國際經營與貿易學系 === 106 === The empirical studies related to capital reductions in the past mostly discussed issues such as financial variables and stock price performance after capital reduction. This research for the first time take into account corporate governance variables to discuss issues related to capital reductions. Study whether corporate governance affects capital reduction decisions and share price declarations of capital reductions by using event research methods and econometric analysis. We find important findings as follows, First, good corporate governance can decreasing the company information spillover before the announcement of reduction capital. Reduce the effect of information spillover when corporate governance in the early stage of capital reduction is better and it helps to increase the stock returns after capital reduction. Second, capital reduction does not improve the financial performance of company, probably more focused on stock price speculation. Finally, companies with higher control power are more reluctant to reduce their capital, and the lower the assets utilization and the after-tax net profit rate, the more probability to reduce their capital. In addition, the electronics industry is more interested in reducing capital, The more companies with larger will be more cautiously in implementing the decision of capital reduction.