| Summary: | 碩士 === 銘傳大學 === 會計學系碩士班 === 93 === ABSTRACT
Under information asymmetry condition, this study examined whether insiders of major stockholders made use of exclude small stockholders to participate in subscription and depressed conversion price to conduct arbitrage behavior.
This study used a sample of convertible bonds issuance using bookbuilding during 1996 to 2004. I used the event study to conduct the empirical analysis, which adopted conversion price base day and exercise price payment deadline as event days respectively to observe the trend of cumulative abnormal return (CAR) of event period. The hypotheses and related empirical results were summarized as follows:
Hypothesis 1.1, 1.2, and 1.3 predicted CAR of thirty days, twenty days and five days before base day of conversion price could be negative respectively. The empirical results supported the above hypothesis. On the contrary, I found that CAR between payment deadlines to conversion date was significantly negative, which was inconsistent with the second hypothesis prediction, which indicated insiders could not build up stock price of objects successfully.
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