| Summary: | 碩士 === 國立中央大學 === 財務金融研究所 === 99 === The main purpose of this paper is to discuss what factors may influence the financial institute’s private placement sell at a premium or discount. We cover five main aspects： investor’s identity, corporate governance, performance, market structure and information asymmetry. Besides, we use Ordinary Least Square (OLS) and Tobit model to do the analysis.
According to our results, if the financial institute’s private placements be invested by foreign investors, then it will be inclined to sell at a premium. Furthermore, if managers or directors participate in the private placement, based on the self-interest theory, this kind of private placement tend to be sold at a discount. However, if outsider can get the director’s position through the private placement, they will willing to buy at a premium.
In the corporate governance aspects, the more shares owned by the directors, the more possibility that private placement sell at a premium. In the market structure, we use Herfindahl- hirschman index to test. The result shows that if the financial institutes have more market power, its private placement also tend to be sold at a premium.
Finally, we use the robustness test. We find that if the macroeconomics gets better, the private placement will sell at a premium. In addition, if the financial institutes belong to financial holding company, then their performance may better than those not belong to financial holding company. Therefore, they also prefer to sell at a premium.
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