The Company often enlarge its scale to maintain its competitive advantage by investing. When company lacks of internal funds, it will raise funds from outside. The purpose of this study is to explore how company chooses financial instruments and influence of the announcement effect on stock price. This study analyzes Taiwan listed company by the the sample period from 1993 to 2005.
There are two parts of the thesis. The first is the factor of choosing certain financial instrument. We use logistic regression model, both binary and multinomial, to figure it out. The second is the influence of the announcement effect has on the stock price. We use event study to find whether abnormal return exists.
Conclusion:
1. If the company¡¦s size is larger, it will choose debt to raise funds.
2. If R&D expense relative to net sales, debt ratio, the proportion of intangible asset are higher, the company will be tend to raise funds by choosing convertible bond
3. If the stock price is overvalued, the company will choose stock.
4. Taiwan listed company will experience negative stock return whatever it chooses stock, debt, or convertible bond.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0624106-134536 |
| Date | 24 June 2006 |
| Creators | Chen, Hsin-jung |
| Contributors | So-de Shyu, Ming-Chi Chen, Henry Y. Lo, Jen-Jsung Huang |
| 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-0624106-134536 |
| Rights | withheld, Copyright information available at source archive |
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