| Summary: | 碩士 === 國立高雄應用科技大學 === 金融資訊研究所 === 94 === Euro convertible bonds (ECB) and global depository receipts (GDR) have become popular financing instruments for Taiwanese financial Industry in recent years. However, no matter what kind of instruments they use, the leverage usually influences a financial institution's capital structure and might futher affect its firm value. The aim of this study is to investigate the relationship between financing behavior and financial performance against ECB and GDR. The data for the empiricl analyses is based on those financial institutions experiencing the issuance of ECB and/or DR from 2002 through 2005.
This paper first employs a logistic regression to examine the determinants in rasing capital from foreign markets. Next, it explores the impact of issuance of GDR and/or ECB on its firm's value by the event study. The empirical results are summarized as follows:
The major determinants to financing decision abroad include firm size, ROE, growth ability and strategies of mergers & acquisitions. Debt ratio is not a major concern in financial institutions’ financing decision abroad. However, it shows that the announcement of issuing ECB or GDR exerts a depressing impact on firm's return.
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