The decision-making factors and company characteristics of overseas financing: Taiwan Evidence
碩士 === 中國文化大學 === 會計研究所 === 93 === Previous empirical studies indicate that the main motivations of overseas financing are improving international reputation and reducing the costs of capital and interest. The loosening of statutory reporting requirements and the acceleration of internalization of b...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2005
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| Online Access: | http://ndltd.ncl.edu.tw/handle/47790519572602820619 |
| Summary: | 碩士 === 中國文化大學 === 會計研究所 === 93 === Previous empirical studies indicate that the main motivations of overseas financing are improving international reputation and reducing the costs of capital and interest. The loosening of statutory reporting requirements and the acceleration of internalization of business in Taiwan during recent years lead to the trend for raising the capitals in foreign capital markets. This study focuses on the reasons for overseas financing nowadays comparing with previous studies. In this paper, following Yamori and Baba (2001), we used a mail questionnaire to obtain relevant information on overseas financing decisions of Taiwan companies and examine the financial characteristics of the firms on securities issuing abroad. As our survey shows：
1.Taiwan managers regard the increasing foreign investors and stockholders as well as the increasing prestige and visibility in the host country as the primary benefits to overseas financing. The greater frequency of financial reporting and more extensive financial disclosure are regarded the primary costs in Taiwan.
2.The major consideration of choosing listing market is the suggestions of commission brokers. Taiwan managers regard Luxembourg and London as their favorable listing markets due to the consistency of accounting standards.
3.The primary purpose of the funding is to expand the scale of business operation or to buy the overseas materials and equipments.
4.The underwriting experience and reputation of the investment banks are important factors to choose foreign lead manager.
5.Firm size and profitability on foreign markets are positive effective factors influencing decisions on securities issuing abroad. The rate of foreign investment did not influence firm’s decisions on securities issuing abroad.
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