Research of Performance on the Companies of Capital Reduction or the Companies of Capital Reduction and Capital Increment – Using Heckman Two-Stage Estimation Procedure

• Main Authors: Yi-ming Hou, 侯義明
• Other Authors: Ma-ju Wang
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/32371040416930568643

碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 99 === The research adopts Heckman Two-Stage Estimation Procedure to investigate the variables that affect the performance and Cumulative Abnormal Returns of firms. Moreover, contrast between OLS regression and Heckman Two-Stage Estimation Procedure if they are difference. In regard to performance, the higher of the leverage of firms when firms announced the capital reduction, the current ROA will be larger when the capital reduction has been finished. We guess that appropriate capital reduction can help development of firms with leverage. The higher PBR of firms of capital reduction and capital increment, ROA will lower. The higher PBR of firms of capital reduction, ROA will larger one year after capital reduction. The lower cash flow rights and the higher control rights, ROA will larger half of a year after capital reduction. Because of samples, the result is different from other literature. The greater of degree of capital reduction of firms, the positive reaction of markets is larger. The possible reason that firms arise from the dead is larger degree of capital reduction. Firms of capital reduction have shortage of funds, it can help them with deploy of funds when greater ratio of cash flows, however, markets will offer more positive response to them. Because firms of capital reduction and capital increment have already planned the source of funds, they do not worried about funds; therefore, markets will offer smaller positive response to them. The method of the issue, Heckman Two-Stage Estimation Procedure is more appropriate than OLS. However, the variables which in two methods are similar, it means that OLS that has sample selection bias is still good for results of regression.