| Summary: | 碩士 === 國立臺灣大學 === 財務金融學系 === 81 === There are two purposes of this study : to understand the
motivation behind the choice of convertible bonds over other
financing vehicles through questionaires and to investigate
stock price reaction to the announcement of convertible bond
issuance with event study methodology. The major findings are:
To reduce interest payment , to delay stock issuance, and to
have the advantage of setting higher-than-market conversion
price are primary motivations of issuing convertible bonds. On
the other hand, those who prefer stock financing believe that
convertible bonds are not widely accepted by the investment
community, and the low secondary market liquidity of
convertible bonds may hurt investors. As to the future
financing choices, bank loans still make the top of the list,
followed by stock offerings, covertible bond offerings and
covertible preferred stock offerings. In the process of
convertible bond offerings, we don''t find any siginificant
abnormal stock price behavior with respect to the announcement
date, the SEC approval date, the underwriting date and the fund
submission date. There is no siginificant indication that the
convertible bond offerings cause any possible future dilution
effect on existing shareholders stake, either.
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