Empirical Analysis of Depository Receipt Issuance Incentive

• Main Authors: Yu-Hsuan Wu, 吳育瑄
• Other Authors: YANG-PIN SHEN
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/36009408862180318280

碩士 === 元智大學 === 財務金融學程 === 99 === In general, companies that cross list help to drive awareness and expand investor base, furthermore, reduce companies’ coat of capital. Therefore, cross-listing decision usually been treated as good signal in various foreign cases. However, there are ambiguous conclusions about the impact on firm value of initial global equity offering in Taiwanese cases. This study use Taiwanese case to investigates the motivations of managers behind the decision of issuing depositary receipt, and tries to figure out whether different motivations have different impact on firm value. Furthermore, this study attempts to examine the relationships between corporate characteristics and managers’ motivation of raising global equity capital. This research use three hypotheses to test above comment, and offer「Investment Hypothesis」explain the relationship between DR issuance incentive and firm value. Empirical results show that, compare to financial aspect, firms issue DR with investment aspect has higher firm value. Besides, the results also support large shareholders divesting hypothesis and bonding hypothesis, and for those firms with higher growth opportunity and lower current ratio prefer to issue depository receipt.