The Effects of Capital Reduction and Private Placement on Equity Performance

• Main Authors: Liu, Kuan-Hua, 劉冠華
• Other Authors: Han,Chien-Shan
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/09470085189768116052

碩士 === 輔仁大學 === 金融與國際企業學系金融碩士班 === 99 === Abstract： This study aims to investigate the private placement and capital reduction with private placement to business performance and stock returns. We choose all domestic listed companies from MOPS which practice private placement or private placement after capital reduction in one year during 2002 to 2008. By using event study method, we examine the difference of ROE, ROA and stock return between before and after announcement day. First, there exists a significant positive accumulate return from t-10 to t+10, it reveals that private placement endows positive information contents. Second, the same results exist on those companies that adopt private placement after capital reduction in one year. Finally, private placement after capital reduction in one year is a way to adjust financial structure. Our data proved this viewpoint. We found, by virtue of this practice, ROE and ROA have a significant improvement.