This thesis is to explore the associations between two major factors and the pricing policy of the Depositary Receipt (DR) from the past experiences of Taiwanese listed companies.
We first apply regression models to investigate the relationship between the first factor, the percentage change of the stock prices in that year of Taiwan Stock Exchange (TWSE) and the premium/discount in pricing DR. Then, we examine the connection between the second factor, the percentage change of the issuing companies¡¦ stock prices within the past 180 calendar days in TWSE prior to the offering of DR and it¡¦ final pricing.
We also interviewed several financial experts to collect the industry norms on the pricing strategies of DR in order to help the future issuers meet their expectations.
We have concluded the following:
1. With the significance level of 95%, there is no linear relationship between the final pricing of DR and the percentage change of the stock prices of TWSE.
2. With the significance level of 95%, there is also no linear relationship between the final pricing of DR and the percentage change of the issuer¡¦s stock prices for the past 180 days.
3. With the significance level of 95%, there exists very significant negative linear relationship between the final pricing of DR and the percentage change of the issuer¡¦s stock prices for the past 180 days, if we exclude all the cases of enjoying premium in DR pricing and all the stock prices that have a percentage increase over 170% prior to the offering of DR.
4. The best pricing policy for a company to issue a DR is to sign a contract with the bookrunner in which the limited discount percentage of DR¡¦s offering is guaranteed.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0722103-150232 |
| Date | 22 July 2003 |
| Creators | LIU, TSAI-WU |
| Contributors | Liang-Jin Huang, Gin-Fong Wen, Shyh-jer, Chen |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0722103-150232 |
| Rights | not_available, Copyright information available at source archive |
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