碩士 / 輔仁大學 / 應用統計學研究所 / 91 / This study follows the thread of Myers and Majluf (1984) and Stein (1992) mainly focusing on pecking order and back door hypothesis under the asymmetric information forum. I collect the data of electronic firms that issued ECB and DR from 1996 through 2001. The matching sample is selected with equivalent assets value and of which the financial characteristics are compared to those of the issuing firms. I further examine whether the financial characteristics are related to firm’s choice of international financing, and which one(s) is/are ultimate determinant(s). The abnormal returns are calculated for the event window when firms announce international financing, and which are then regressed on their prior financial characteristics.
The results show that the ECB issuing firms are inferior to non-issuing matching firms in terms of financial performance measures. However, the firms are on average equipped with growth potentials. This verifies the dictum that the issuing firms are undervalued due to asymmetric information and reluctant to use equity-type instrument. In contrast, the DR issuing firms have superior financial performance measures and growth potentials as compared to their matching firms. I argue that these firms are with the purpose to enhance global comparative advantage and lever reputation effect. The prior financial characteristics are insignificantly correlated with firm’s choose of international financing due to the confounding effect of the negative information asymmetry and positive reputation.
For the ECB issuing firms the cumulative abnormal returns in the event window is positively correlated with their prior profitability, as predicted that investors concern most about the rudimentary nature of the issuing firms. The result also shows that the agency problem embedded in free cash flow negatively affects investor’s response. Moreover, the R&D expenditure is positively correlated with cumulative abnormal returns.
For DR issuing firms the prior debt ratio is negatively correlated with the cumulative abnormal returns in the event window. The DR issuing firms with bounded debt capacity are recognized as a suboptimal solution to financing, and that abates the possible reputation effect. However, the free cash flow is less than a problem for the DR issuing firms partly because the dominance of reputation effect over embedded agency problem.
| Identifer | oai:union.ndltd.org:TW/091FJU00506023 |
| Date | January 2003 |
| Creators | Tzu-Yang CHANG, 張子揚 |
| Contributors | Kuo-Chuan LIU, 劉國傳 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 49 |
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