| Summary: | 碩士 === 雲林科技大學 === 企業管理系碩士班 === 99 === Corporations will suffer the risk of financial constraints when they are operated. If the corporations suffered the financial constraints, at the same time, it will affect the decisions of investors. The study would like to find out when the company suffers financial constraints how the investors to decide the strategies of their investment.
The study uses the data of Taiwan stock market from Jan. 2000 to Dec. 2009. Ac-cording to Shen, Chung-Hua, and, Chien-An, Wang (2000) definition of financial con-straints, the study uses the cash dividend to determine whether the business met fi-nancial constraints or not, after that, using the definition of mispricing effect ( Jenter, 2005), we can get four combinations, they are financial constraints with high market value, financial constraints with low market value, nonfinancial constraints with high market value, and nonfinancial constraints with low market value.
The empirical results show that performance depends on their investing, that means, if short turn investment, financial constraints with high market value will get the best results, but if holding time getting long, financial constraints with low market value is the best choice.
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