碩士 / 中原大學 / 國際貿易研究所 / 93 / Abstract
This paper researches into the influence of interest rate, exchange rate, debt, and the issuance of Eurodollar Convertible Bond（ECB）on the investment policy of companies by observing the listed companies of Taiwan 50 from 1991 to 2003. This paper adopts the ARMA Model and Moving Model to estimate the volatility of interest rate and exchanges rate and uses Fixed Effect model of Pool Estimation to analyze how interest rate, volatility of interest rate and exchange rate, issuance of domestic debt and ECB affect companies’ investment. (Ritter and Warr, 1998) No matter from all samples, high-low debt samples, and high-low risk samples, the empirical result shows that market interest rate has positive but insignificant effect on companies’ investment decision. Neither does the volatility of interest rate affect the companies’ investment policy significantly. When the interest rate of ECB moves more drastically, the higher the investment risk the companies will face. In this situation, the creditors will require relatively higher interest rate premium to compensate the increase of investment risk. Considering the additional interest expenditure for investment risk, the companies may reduce investment activities. The empirical result also finds that higher volatility of ECB interest rate would depress the companies’ willingness for investment and reflect negative correlation with the investment of companies. Debt and investment has statistically negative and significant correlation. High debt ratio means that the companies have lower liquidity and makes them difficult to acquire external finance. The cost of capital would also go higher and thus the scale of investment cannot expand. From sample of all companies, high-debt companies or low risk companies, we find that there is a positive and significant correlation between the issuance of ECB and company investment and that the financial condition of these companies are not better than that of low-debt or high risk companies. Hence, when the high-debt or low risk companies acquire the fund in need, they would instantly invest the raised fund in fixed asset, machines, and equipments the factories need. However, because low-debt or high-risk companies have better financial condition, they may not invest the fund from the issuance of ECB in fixed investment. On the contrary, these funds may be used on M&A activities or to improve the companies’ financial structure. As the result, fixed investment may not be the true purpose of issuing ECB.
| Identifer | oai:union.ndltd.org:TW/093CYCU5323010 |
| Date | January 2005 |
| Creators | Shu-Fang Chang, 張樹芳 |
| Contributors | Po-Chin Wu, 吳博欽 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 59 |
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