Please use this identifier to cite or link to this item:
|Other Titles: ||A study of relationships among convertible bonds, financial statements and stock prices for electronic companies listed in TSE and OTC|
|Authors: ||何榮隆;Ho, Jung-lung|
|Keywords: ||白噪音;零負債稅盾稅;舉債假說;Convertible bonds;Financial statements;TSE and OTC;Independent and pair T- test;Corporation governance ratio;Event window|
|Issue Date: ||2010-01-11 03:06:50 (UTC+8)|
The study is to investigate the relationships among convertible bonds, financial statements and stock prices for electronic companies listed in TSE and OTC from 2001 to 2003. The purpose of the study is to provide with reference to investors in purchasing the convertible bonds and to financial institutions in processing credit cases of issuing convertible bonds. The ways of the empirical study are as follows: (1) analyzing if there is any difference in financial ratio and operating performance after issuing convertible bonds, (2) examining if there would be the effect of information spillover when declaring issuance, (3) studying if the impact toward stock prices would be varied when the issuing objective is different, (4) exploring the reason of issuing convertible bonds, and (5) in what financial circumstance it would be a good timing to issue convertible corporate bonds. The important findings of the study are as follows:
1. The listed electronic companies always try to improve the company’s financial status and increase profitability by issuing convertible bonds. However, in the independent and pair T-test of the study, the result indicates that there is a very limited improvement in issuing company’s financial status, ROE and ROA.
2. From the perspective of financial analysis ratios and corporation governance ratio through multiple regression analysis method, the company with higher debt management ratio and low current asset turnover ratio tends to issue higher amount of convertible bonds. Meanwhile, the director holding a higher portion of stock also tends to issue higher amount of convertible bonds. This means that the director (big stockholders) may use the chance of issuing convertible bonds to gain profit by arbitrage, whereas to exchange old stocks with new ones. Nevertheless, the corporation may sense the convertible bonds are not a good investment objective since the corporation does not relatively hold many of the stocks.
3. By Logit regression method, the result presents that the financial statements of the issuing companies reflect small net asset value ratio, high debt management ratio, low current asset turnover ratio and high debt ratio. This represents that the financial status of the issuing companies are not in a good condition. The companies may be in short of cash and urgently need to infuse into capitals; otherwise, the company would burst out financial crisis.
4. To examine issuing objectives of different companies by event study, it is to investigate if the information disclosure would stimulate stock prices. The result indicates when the issuing purpose is to pay back debt, the simulating effects have direct impacts on stock prices; in other words, there is a positive accumulated abnormal returns. However, the other objectives do not carry the stimulating effect and would cause the stock price to drop after the information disclosure.
5. If the event window are extended (from –30 to 30), the issuance of convertible bonds would make the stock price to go up before the date of event in general. But the stock price may drop after issuing, which means stock price is up before issuing for the sake of issuing the convertible bonds. The stock price will drop afterwards since there is no more incentive after issuing.
Keywords: Convertible Bonds; Financial Statements ; TSE and OTC; Independent and pair T- test; Corporation governance ratio; Event window
|Appears in Collections:||[管理科學學系暨研究所] 學位論文|
All items in 機構典藏 are protected by copyright, with all rights reserved.