碩士 / 中原大學 / 企業管理研究所 / 99 / A recent Wall Street Journal report shows that Acer, Foxconn, AUO, TPK and UMC have all increased the amounts of their global ECB issuance since 2010. This study finds that the above companies usually raised adequate funds through issuing ECB and the price premium of ECB increases each time. Tsao (2011) argued that the international convertible bond market serves as a good funding source for Taiwan’s companies due to the low interest rate of Taiwanese banks, so that Taiwanese banks can provide good terms of the asset swaps.
Numerous researches have focused on the impact of internationally single financial instrument on the financial performance or the stock price of the company. This study attempts to examine the announcement effect of ECB issuance for the internationally cross-listed companies. This investigation also examines the factors affecting the abnormal returns for the ECB as well as the stocks of the cross-listed companies.
This study uses the event study approach to examine the abnormal returns for the cross-listed companies which have declared ECB issuance in the past decade. Empirical findings show that there are announcement effects for the cross-listed companies. However, this investigation also finds that the stocks of companies to generate negatively cumulative average abnormal returns. This finding implies that the investors who bought convertible bonds in the international market would also sell short the stocks for hedging purpose. Consequently, the cross-listed companies will likely incur negative abnormal returns on their stock offerings day.
Moreover, this study finds that the insignificant effect exists for long-term debt ratio, revenue growth rate and conversion premium on the first event day. This work also finds that investors having a positive evaluation on the companies which have high long-term debt ratio and high growth rate on the second event day. This result confirms with the Stein (1992)’s Backdoor Equity Hypothesis and Mayers (1998)’s Sequential Financing Hypothesis. The conversion premium is also found to be negatively correlated with the cumulative abnormal returns, which confirms with Peng’s (2009) finding, but is inconsistent with the signal hypothesis.
| Identifer | oai:union.ndltd.org:TW/099CYCU5121050 |
| Date | January 2011 |
| Creators | Wun-Sin Hu, 胡文欣 |
| Contributors | Wei-Shan Hu, 胡為善 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 53 |
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