The Study of The Effects of Foreign and Domestic Securities Financing Announcements on Firms’ Stock Prices of Taiwan''s Publicly Listed Companies

• Main Authors: Chia-Wen Wang, 王嘉雯
• Other Authors: Timothy-Tingson Wang
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/89645522638915126386

碩士 === 國立東華大學 === 國際企業研究所 === 91 === The relationships of world nations’ financial environment have become more and more closely related and enterprises’ operational scales have steadily increased. Sources of businesses’ financing demands shift from domestic to foreign capital markets. When raising funds in foreign capital markets, issuing global depository receipts (GDRs) and Euro convertible bonds (ECBs) are most popular financing ways. In domestic capital markets, the common ways are season equities offering (SEO) and convertible bonds (CBs). This study focuses on influences on the effects of financing announcement on firms’ stock prices. Both foreign and domestic securities financing instruments are to be investigated. There are total of 552 samples that consist of 332 of season equities offering, 22 of convertible bonds, 29 of global depository receipts and 69 of euro convertible bonds. We use market model of event study to calculate abnormal return rates and t-test to test the significance of the effects of four different kinds of financing announcements of foreign and domestic securities on firms’ stock prices. The empirical results of the study are as follows: 1. As a whole financing events, the investors in Taiwan’s stock market regard the publicly listed companies announcing to finance as beneficial information, and the value of this information full reflected on the stock prices. 2. Considering individual financing announcement as it stands, this study investigates: (1) The effects of season equities offering on firms’ stock prices are positive. (2) The effects of announcing to issue convertible bonds on firms’ stock prices are negative. (3) Taiwan’s investors regard announcing to issue global depository receipts as a negatively information. (4) The abnormal returns of announcing to issue euro convertible bonds are positive but not significant. 3. The positive effects of announcing season equities offering are rather than global depository receipts. 4. The positive effects of announcing domestic convertible bonds are rather than euro convertible bonds.