| Summary: | 碩士 === 銘傳大學 === 管理科學研究所 === 89 === The regulation of mandatory financial forecast, enforced in 1991, required the issuer of convertible bonds should disclose forecasted earnings. Hence, this thesis examines the association between the issuance terms of convertible bonds and the earnings forecast error. According to the theory of informational asymmetry and related literature, it will be examined the following hypothesis is focal point in this thesis when the issuance terms are favourable (unfavourable) to the investors, the earnings forecast error is lower (higher).
The empirical data were obtained from the database of Taiwan Economic Journal (TEJ) and the prospectus of convertible bonds issuers from 1991 to 1999 for the listed securities in Taiwan stock market. From the results of empirical test, the issuance terms are highly correlated with the earnings forecast error.
The main findings are as follows:
(1) The higher the issuance amount, the lower the earnings forecast error.
(2) The longer the issuance period, the lower the earnings forecast error.
(3) The higher the issuing premiun, the higher the earnings forecast error.
(4) The longer the convertible perild, the higher the earnings forecast error.
(5) The higher the debt ratio, the lower the earnings forecast error.
|
|---|
