Choices in financing is an important issue when firms need to leverage. With the giant capital concerned, including the capital structure, investment decision-making, and dividend policy etc., it plays a crucial role for a firm's future. Among the foreign literatures, unlike equity offerings or public debt offerings, bank loan financing elicits a significant positive stock price reaction. The lengthy foreign literature on firm financing decisions relies (in parts) on this finding to characterize bank loans as ¡§unique¡¨ or ¡§special¡¨ forms of external finance. During the process of approval for loan, banks will make a great effort on monitoring and verifying the quality of firm¡¦s credit capability. The information banks get makes bank loan as an important way to reducing the information asymmetry between firms and the investigators. We further explore the uniqueness of private lending announcement by examining the short-run and the long-run equity performance of bank borrowers. With single-factor model and Fama-French three-factor model, the loan announcement both caused a positive borrowers returns in the short run and long run overall. But there is no cross-sectional effect in the short run. Although the industry variable elicits a significant positive reaction in the long run, it¡¦s only because of the characteristic of the industry, not the loan announcement effects. We conclude that the loan announcement has no influence on the borrowers return

The objects this thesis want to study can be separated into two parts. The first part is investigating why firms choose to issue convertible bond. We use the public financial information and macroeconomics factors to establish a security choice model. In this security choice model, we can understand the motivation of issuance and investors¡¦ expectation of security type (equity-like or debt-like) which will be issued. The second part of this thesis is about convertible bond issuance announcement effect. We want to know if the public information and the pre-issuance security type expectation would affect the announcement effect. Following is the conclusions: (1) We find that less information asymmetry, less agency cost, more operating risk will lead to higher probability of equity-like security issuance. (2) Most convertible bonds issued in Taiwan are more debt-like. (3) Equity-like convertible bonds issuances have negative announcement effect. The issuances different from expectation will lead to more negative price effect, especially those debt-like firm but issue equity-like security. (4) The variables that can explain security choice may not explain the announcement price effect.

This paper analyzes the relationship between the merger announcement returns and the bidding firms' preparations for mergers. In this study, merger preparations are defined as bidding firms' adaptive actions of changing their executives prior to mergers. An analysis of the relative effectiveness of merger preparations is conducted through event study for univariate tests. In addition, a regression for multivariate tests analyzes incentives for making merger preparations. The results of these studies indicate that (1) hiring of new executives from outside the target proves to be the most effective merger preparation, (2) firms who make merger preparations have higher returns, and (3) hiring of new executives from the targets proves to have negative effects on bidding firms' returns, though this can vary based on the relative size of the target.

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This thesis examines the impact of announcements of syndicated loans on the share prices of borrowing firms. I use a sample of 5,465 loan observations reported in the International Financing Review Platinum database to study this impact. Event study methodology is used. My overall results show significantly positive wealth effects on the borrowing firms. However, when I partition my data set into revolving credit agreements, term loans and hybrid loans, I find that the results are driven primarily by revolving credit agreements. I also observe that the size of the event window plays an important role in identifying the wealth effects for the borrowers. A five-day event window (-2, +2) shows share price response to revolving credit announcements to be significantly positive. A three-day event window (-1, +1) reveals that announcements are statistically positive for revolving credit agreements and statistically negative for term loan announcements. My results are consistent with previous studies in this area. I also distinguish between financial press announcements and information provider (IFR) announcements to cater for the potential for reporting bias. I find that both the IFR and financial press announcements are significant for the five-day window, but only the financial press results are significant for the three-day window. My study is unique in that I differentiate the impact of different sources of information on the market reaction to borrower share price. In addition to the examination of the wealth effect, I also use the structure of the loans to examine the uniqueness of bank loans and their ability to provide financial slack. Specifically, I examine whether revolving credit loans or term loans or hybrid loans make bank loans unique and their ability to provide financial slack. I observe that out of the three structures of bank loan, only revolving credit loans allow the borrower to more precisely match the funds acquired with the firm’s investment needs and to market time by borrowing at times when financing costs are attractive. Revolving credit loans are positively valued by the market both initially and over the longer term. Bank loans reduce information asymmetry, but the renegotiation characteristics of revolving credit loans allow borrowers to exploit changes in the interest rate environment, thus providing support for the market timing theory of capital structure. In contrast to puzzling results of previous studies, I present evidence of long-term positive performance following bank loans.

This research examines the impact of acquisition strategies and the level of economic development of the target country on announcement returns of acquiring firms in the United Kingdom (UK) during the sixth (2003-2007) and upcoming takeover wave (2013-present). The different acquisition strategies concern geographic expansion (GEO), increasing market share (IMS), vertical integration (VERT), access to intangible resources (INT), concentric diversification (CDIV) and pure diversification (PDIV). Based on a sample of 877 acquisitions, evidence shows that GEO significantly creates value in the sixth wave and results in significantly lower announcement returns in the upcoming wave, possibly explained by a higher integration of capital and production markets. However, after adding the remaining acquisition strategies to the regression model, the latter effect disappears. It shows that VERT and CDIV result in significantly higher announcement returns in the upcoming wave compared to the sixth one. Evidence does not show a relation between the level of economic development of the target country and announcement returns.

A loan deal is often composed of several components (for example, a 3-year revolving loan, a 10-year secured senior term loan, and a 5-year subordinated term loan). The division of a deal into two or more components, each with different risk characteristics, is called tranching. This study recognizes the importance of tranching and establishes tranching as an integral component of a syndicated loan structure. In the first essay, we present a model to explain the economic value of tranching and show that riskier firms are more likely to take loans with multiple tranches. Therefore, the average credit spread on syndicated loans with multiple tranches is higher than that on nontranched loans. However, after accounting for the risk characteristics of a tranched loan, we show that a given tranche of a multi-tranche loan, on average, has a lower credit spread than an otherwise similar loan that is not part of a multi-tranche loan. We also show that the benefits of tranching accrue primarily to borrowers with speculative debt ratings. Prior studies have found an abnormal stock return of 100 to 150 basis points for firms that announce they have borrowed funds from a bank. Despite some conflicting evidence (Peterson and Rajan, 2002; Thomas and Wang, 2004; Billett, Flannery and Garfinkel, 2006), the literature tends to interpret this positive bank loan announcement effect as the markets response to the mitigation of information asymmetry regarding the borrowing firm caused by the certification role of the lending banks who act as quasi-insiders. In the second essay, we document that a strong selection bias exists in prior studies. We show that less than a quarter of the loans made by banks are ever announced by borrowing firms and the loans that are announced are systematically different from loans that are never announced by the firms. Firms with low debt ratings, firms with zero or negative profits but positive interest expense, firms that take large loans in relation to their assets base, firms with little analyst following, and firms with high forecasted EPS growth are more likely to announce their loans. We show that while there was a positive announcement effect over the period 1987 to 1995, loan announcements elicited zero or negative returns in the last ten years as the mix of companies announcing loans changed over time.

La novela Arráncame la vida, de la autora mexicana Ángeles Mastretta, pone hincapié en la desigualdad entre hombres y mujeres y la emancipación de la mujer oprimida. Catalina, casada con un general de la revolución, narra sus experiencias desde su situación como mujer, esposa, madre y amante en el contexto postrevolucionario mexicano. En la superficie textual del relato se entretejen una serie de canciones que aparentemente funcionan como trasfondo de ciertos acontecimientos en la historia. No obstante, Mastretta sugiere otra posibilidad de lectura por las referencias musicales en la obra. Estas referencias son principalmente boleros y, como elementos intertextuales, revelan contenidos subyacentes que no son evidentes en la superficie textual de manera concreta. Nuestra hipótesis es que la función de la música en la obra consiste en enunciar sentimientos y decisiones, anunciar o anticipar eventos del relato, y denunciar injusticias en la narración, comparable con fenómenos contemporáneos como los narcocorridos. En la conclusión recalcamos estas funciones intertextuales como ayuda de mayor compresión de la novela. / The novel Arráncame la vida, by the Mexican author Ángeles Mastretta, puts emphasis on the lack of equality between men and women, and the emancipation of the oppressed woman. Catalina, married to a general of the revolution, narrates her experiences as a woman, wife, mother and lover in the Mexican post revolutionary context. Various songs constitute a background on the narrative’s textual surface. However, through these musical references, Mastretta suggests a different kind of approach of reading the story. These references are primarily boleros, and, as intertextual elements, they reveal underlying contents, not easily discovered on the textual surface. Our hypothesis is that the function of the music in the novel is to enounce feelings and decisions, announce or anticipate the story’s events, and denounce iniquities in the narrative, comparable with contemporary phenomena like the ‘narcocorridos’. To conclude, we state that through these intertextual functions, one can reach a higher comprehension of the novel.

Abstract Though there were many international paper on the European Convertible Bond¡]ECB¡^. Most of them focus on the electronic industry. Financial industry was excluded. A financial holding company made the good use of international source by issuing ECB overseas under the pressure of achieving internationalizes. The purpose of this study is to explore the distinctions of the financial holding companies who have announced issuing European Convertible Bond¡]ECB¡^during 2002 to 2003. To identify the financial character and evaluate the influence on the companies¡¦share price followed by the issuance of ECB from the statistic viewpoint of financial analysis and the dynamic viewpoint of the impacts on the company¡¦s value. There are two parts of the thesis. The first part is about the effect of the financial holding company¡¦s value for their issuing ECB by using the event study. Using probit and logic regression analysis to examine the effect of various financial factors in decision-making process of issuing ECB abroad did the second part. The financial character of financial holding companies with ECB issuance have significant differences in compared to those who have not yet issued ECB. Conclusion: 1.With¡¨Event study¡¨the results shown that there is no significant effect in the short term but cumulative average abnormal return is negative in the long term on the announcement data in exiting shareholders stake of issuing ECB. 2.At 5% significance level¡Aempirical results shown that listed financial holding companies with ECB issuance have significant differences in debt ratio, EPS and firm size compared to the companies who have not yet issued ECB.

There are more and more enterprises using private placement after private placement is permitted in Taiwan in 2002. It shows that private placement is becoming one choice for public companies to raise capital. The study examines the announce effect of private placement, the one year stock price performance after private placement, variables related to stock price performance after private placement, and earning management in private placement. The results of the study as follows¡G 1.Public enterprises¡¦ private placement did not have a significant announcement effect; it maybe because that most public enterprises with private placement were small enterprises, when they announced private placement did not catch investors attentions. 2.Insiders know more information than general investors, and most private placement rose from insiders. It maybe shows that insiders think enterprises would get better after private placement. So insiders got major portion of private placement maybe the reason of the significant positive of one year stock price performance after private placement. 3.In regression analysis, firm size and stock price performance present significant negative relationship, the ratio of insiders and institutions has significant positive relationship with stock price performance. 4.The study did not find enterprises through earning management lure investors to attend private placement.