The Long-run Performance of Listed Firms after Capital Decrease

• Main Authors: Dong,Jian-Jhong, 董建中
• Other Authors: Kuang-Ping Ku
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/44425288287087168965

碩士 === 中國文化大學 === 會計研究所 === 93 === In order to identify the effects of price behavior by reducing capital to make up a lose and stock repurchases,the investment performance of listed firms from January 1, 2001 to June 30,2003 are examined by event study of listed firm.Whether the stock price of performance to use reducing capital under TSE or OTC.The investment performance are examined by CAR,BHAR,and CTAR to test the existence of abnormal return.The benchmark portfolios are EWRM,VWRM,MV, and MVBP of reference port-folio and MV, and MVBP of control firm. On one hand ,it is indicated that capital decrease according to Corporate Regulation to make up a loss are associated with negative return but not significantly.On the other hand, the long-term investment performance of capital reducing firms according to Security Transaction Regulation do not show abnormal returns.However,the performance of capital reducing firms according to Security Transaction Regulation are better than those according to Corporate Regulation.There are negative abnormal returns of textile,electronic and the construction industries according to corporate Regulation.The returns of the other industries are positive. However, there exist positive abnormal return of the construction and other industries ac-cording to Security Transaction Regulation. The electronic industry exists negative abnormal return. It shows that the industry factor is an important one to influence the re-sults of investment performance.The year factor does not influence the results of investment performance. In order to test the consistency and robustness of the study, the stock performance are also examined under different industries and different years.