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.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0210103-153537 |
| Date | 10 February 2003 |
| Creators | Chao, Yu-Hsin |
| Contributors | Anlin Chen, none, Chin-Tarn Lee, none |
| 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-0210103-153537 |
| Rights | off_campus_withheld, Copyright information available at source archive |
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