| Summary: | 碩士 === 實踐大學 === 企業管理研究所 === 92 === In this study, market model in event study is facilitated to observe the average abnormal return and cumulative average abnormal return of ECB Issuance Company. Further analysis and evaluations are made based on the empirical results to discuss the influences of ECB issuance of Taiwanese company to its stock price, and later, to categorize sample companies by sector characters and capital purposes. Further more, in expecting to provide critical information for investors while making decision on investment and company finance, the study also probes the mobility of system risk of sample companies before and after the issuance of ECB expecting.
Conclusion has been reached by examining 120 ECB issuance company during the period from 2002 to 2003 as below:
1.For the entire sample companies, negative implications of non-significant effect have been found where ECB is issued. Conservative attitude is prevailed among investors.
2.On group categories, ECB issuance has negative influence on plastic, electron, and others traditional industry sectors while positive to financial and electronics sectors. Therefore, the influence of ECB issuance differs from sectors to sectors.
3.For the purposes of capital, information negative implication is found if the capital is for overseas material purchase, facility/plant expansion, investment and working purpose, while positive is for loan payment. Hence, the influence of ECB issuance differs by purposes.
4.Beta coefficient of a company decreased after ECB issuance is found in empirical results. Reasons might be that both issuance companies and investors expect the highest stock price at the issuance day. Under such condition, stock price of ECB issuance company stays high, even higher than a reasonable price before the day of issuance. As a result, beta coefficient before issuance is higher than after issuance.
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