Institutional Holdings and the Effect of Seasoned Equity Offerings on Firm Efficiency

• Main Authors: I-Ting, Chang, 張怡婷
• Other Authors: Chi-Sheng, Hsu
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/23825886525443353457

碩士 === 東海大學 === 管理碩士在職專班 === 98 === The purpose of this study explored the effect on firm efficiency from seasoned equity offerings (SEO) and institutional Holdings. To further explore the SEO declaration will help alleviate the enterprise caused by asymmetric information and agency costs from insider transaction and institutional holding changes. In this study, my sample period is from 2001 to 2006 and gets 115 companies as a sample basis on the Taiwan Stock Exchange listed. All of the SEO and financial data are obtained from the Taiwan Economic Journal Database (TEJ) and CMoney database. I estimate the equation by stochastic frontier function (Battese and Coelli, 1995) and use FRONTIER 4.1c software. Herewith empirical results summarized as follows: 1.The firm efficiency trends in significant decline from company announced seasoned equity offerings (SEO) of the year and subsequent two years. This study supports「Adverse Selection Hypothesis」 (Myers and Majluf, 1984). 2.Th asymmetric information hypothesis assumes the insiders have more information advantages than outside investors. They will issue new shares when the stock was overvalued. This study also supports this hypothesis, especially to reduce their stake is more significant. 3.It is significantly positive relationship between the institutional ownerships and firm value and also supporting 「Efficient Monitoring Hypothesis」(Pound ,1988). The institutional invertors have more information advantages and information-processing abilities. After SEO declaration, the firm efficiency declining range on institutional holdings reduced is greater than on holdings increased. This means that the information disclosures quality on institutional holdings reduced is better than on holdings increased.