The Taiwan's Electronics Firms' Decision Processes and Company Characteristics Related to Their Issuing in the Foreign Securities—The Case of Euro Convertible Bond and Global Depositary Receipts

• Main Authors: Chia-Wei Li, 黎珈瑋
• Other Authors: Ting-Son Wang
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/16422908127414833384

碩士 === 國立東華大學 === 國際企業研究所 === 90 === As the world financial becomes more globalized, the relationships among different country’s markets become more closely related, and the capitals flow more frequently among them. Besides, the process of internalization of business in Taiwan is accelerated during recent years, and this leads to the trend for raising capitals in foreign capital markets. This study focuses on the most popular international financial tools, Euro convertible bond(ECB) and global depositary receipt(GDR), and uses the major issuers of these tools in Taiwanese listed electronics firms as samples. The first part of this research is done by employing logistic regression analysis to examine the effects of various financial factors to raise capital from foreign securities markets. For discovering the influence factors on the decision making processes, the second part is done by employing the case study method. Results of the study are as follows: The first part: 1. Firm size and degree of economic dependence on foreign markets are positive effective factors influencing decisions on securities issuing abroad. 2. Degree of the assets expansion, growth ability and rate of foreign investment didn’t influence company’s decisions on securities issuing abroad. The second part: 1. There are five important steps in decision-making processes of issuing securities abroad: motivation, use of fund, choosing financial tools, choosing lead manager and foreign securities market. 2. The most important motivation of issuing securities abroad is the high issued price or conversion price, and raising firm’s international well-known reputation is relatively less important. Firm size is the moderator of the motivation of funding abroad. 3. The major purpose of the funding is to expand the scale of business operation. 4. When company chooses to issue securities abroad, the company’s financial structure is the most basic consideration. The experience of issuing securities abroad influences the choices between Euro convertible bond and global depositary receipt. 5. The issuing place, underwriting experience and reputation of the investment banks are important factors to choose lead manager. Small firms must consider if the condition of companies and the size of issuing matched the grade of underwriter. 6. The major considerations of choosing listing market are the size of foreign capital market, the orientation and condition of the company, the constraints of foreign market and financial accounting standards.