碩士 / 輔仁大學 / 金融研究所 / 92 / In 2003 Taiwan remained a main market for Asia’s ECB issuance. However, most ECBs issued by Taiwan’s corporate bore no interest rate, namely zero coupon rate, regardless of conversion price (i.e. premium or discount) set forth in the offering terms, and even with a term of put to yield, the coupon rate virtually stood at zero suggesting that ECB investors had burning desires to convert ECB into common stocks. Therefore, stock price behaviors and future profitability were pivotal elements to a successful ECB offering. Pricing date was the date the conversion price was set, which would influence the length of time to convert fixed-income securities into equity securities, thereby weighing heavily on stock price performance.
This thesis covers cases of ECB issuances priced during 2003, instead of focusing on impacts caused by the coming of announcement date and afterward, an methodology of “Event Study” was employed to explore “Did Fundraising-drive stock price upswing really exist before and after the Pricing Date? “. In addition, a further analysis was conducted to see how did the stock prices of ECB issuers move under different conversion premiums or business cycles.
The study revealed that ECBs priced in 2003 and 15 days before and 30 days after the Pricing Date showed significantly positive abnormal returns on the underlying stock prices, reflecting the so-called “Fundraising-drive Stock Price Upswing”. Moreover, ECBs with different conversion premiums would result in different underlying stock price performances. ECB with high conversion premium (e.g. more than 10%) and low or negative conversion premium (less than 2%) priced 15 days before and 30 days after the Pricing Date would enjoy a “Fundraising-drive Stock Price Upswing”, while ECB with medium conversion premium presented an unobvious sign of stock price upswing. On top of that, during the bullish market between May 2003 and December 2003, ECB issued by Corporate indeed had a better “Fundraising-drive stock price upswing” on underlying stock price; contrary, during the bearish market between January 2003 and April 2003, corporate issuers of ECB only experienced an adverse repercussion, meaning no “Fundraising-drive Stock Price Upswing” in sight.
| Identifer | oai:union.ndltd.org:TW/092FJU00214019 |
| Date | January 2004 |
| Creators | Chien-Fen Chen, 陳千芬 |
| Contributors | Wei-Pen Tsai, 蔡偉澎 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 89 |
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