Companies Characters to SEO Announcement Effects

• Main Authors: CHING-YI TING, 丁靜儀
• Other Authors: Wei-ju Young
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/30436510881639026410

碩士 === 朝陽科技大學 === 會計所 === 101 === The aim of the research is to study the relationship between characteristics of the companies such as growth opportunities, changes of insiders’ holdings, capital expenditures, capital structural, and shares raising percentages, and returns around the announcement date. Adopting event study with sample companies which have seasoned equity offerings (SEOs) from 2008 to 2011 by regression analysis and t test, the study found that SEO announcement has negative effect. Those companies with lower market to book ratio and lower net income growth rate have better announcement effect. There is a signal effects showed by companies with increase insider holdings having positive effects. Complying with pecking order theory, companies with lower capital expenditure and good capital structural have lower abnormal returns around the announcement date. Higher capital raising percentage will increase liquidity of capital market. Investors become more optimistic. There is no significant difference in announcement effects between electronic related industries and others. During the financial crisis, Taiwanese investors show more conservatism.