碩士 / 國立虎尾科技大學 / 經營管理研究所 / 98 / Depository Receipts (DRs) refers to a certificate issued by a foreign depository institution to which a domestic listed company entrusts its shares of a stock. These shares are traded among foreign investors as a tool for financial investment and fundraising. This research targets seventy-eight listed companies in Taiwan, analyzing the DRs they issued from 28 May 1992 to 31 December 2009. Companies which issue DR can lower the possibility of information asymmetry and dispel the uncertainty of business valuation because the entrusted banks will exercise a close supervision over customers who borrow money, with an eye to effectively enhancing loan risk management and correspondingly reducing pricing bias.
When investors have difficulty differentiating the quality of the emitted DR, they resort to exchanged messages to evaluate its values. Moreover, they can send a favorable signal through the index of company profitability, management capability, loan repayment ability and company prospects. A signal as such can be used to reduce information asymmetry and increase business value, which will be conducive to the lowering of pricing bias.
Performance of macroeconomics influences the trend of financial market and investors would take these market trends into consideration while running their funds. Given this, the issuing company will lift pricing bias so as to attract the attention of potential investors, with the result that the issue price will be influenced accordingly.
The issue of DR receives verification from both domestic and foreign securities authorities. Underwriter reputation plays a role of particular importance because investors judge an underwriter’s credibility and expertise by its previous reputation. An underwriter of high repute establishes the confidence of investors much easily, which helps remove the possibility of information asymmetry and narrow the range of pricing bias.
Despite the above, studies remain inadequate concerning enterprise features, underwriter reputation, and the influence of banking relationships and macroeconomics factor on initial depositary receipts offerings of pricing bias. The result of this investigation is expected not only to make a substantial contribution to researches of this field but also to help companies reach a better judgment of the emitting institutions. Meanwhile, it could serve as a reference for securities authority.
| Identifer | oai:union.ndltd.org:TW/098NYPI5457017 |
| Date | January 2010 |
| Creators | Hui-Ju Cheng, 鄭惠如 |
| Contributors | 紀麗秋 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 43 |
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