The Study of Cash Refund and Capital Reduction

• Main Authors: Su, Ching-Hui, 蘇菁惠
• Other Authors: Hsieh, Wen-Liang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/19050017305578350755

碩士 === 國立交通大學 === 管理學院碩士在職專班財務金融組 === 99 === 　　According to the current law in Taiwan, there are three ways to decrease the capital, the cash refund, the purchases of treasury stock, and the capital reduction. This study explains the similarities and differences between these three kinds of capital decreased from the financial side. The announcement effects of the cash refund and the capital reduction are the main　research goals. 　　Since Formosa Hotel launched the capital decreased by cash refund, it has become a new finesse to promote the ROE and the stock price. Different from the cash refund, the companies with net loss take capital reduction as a rapid method to promote the net earnings per share and increase the stock circulation in the market. This study combines the Event Study and the case study of BenQ Ltd. to examine the cumulative average abnormal returns about the announcement effect of capital reduction during the year 2002 to 2008, and discuss the different results between independent companies. 　　The result shows that there are two days positive abnormal returns after the announcement of cash refund, and companies would have a better performance after the announcement of cash refund. There are six days negative abnormal returns after the announcement of capital reduction, and companies would have worse performance. Furthermore, compared to the financial statement and the abnormal returns of BenQ Ltd., the result shows the companies are not only sustaining negative cumulative abnormal returns after the announcement of capital reduction. It demonstrates that the announcement of capital reduction is not the main reason that the investors care about. The investors pay more attention to the operational performance.