The Study of Market Reactiona of Seasoned New Issue of a Change in Ex-right Process

• Main Authors: Chung Chi Yuan, 阮中祺
• Other Authors: 張佳和
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/19851372563241189740

碩士 === 國立政治大學 === 會計學系 === 87 === Abstract This study attempts to examine Taiwan's market reactions of seasoned new issues under the different ex-right processes. In Taiwan , it takes about two or three months to issue new stocks and it's not convenient for both issuers or investers . Before the change of the ex-right process, while public companies issue new stocks , the ways to determine the issue price are different between Taiwan and the United States or Japan. SEC has changed the ex-right process since Oct 17,1994. The study selects samples from the period between 1991 to 1998, total 419 samples , the empirical findings of this study can be summarized as follows: n Significant difference of market reactions can be found on the ex-right date and announced day, under both the new and old ex-right process. n No significant difference of market reactions can be found on the approved day. n Significant difference of market reactions can be found if grouped by industry.