On the Private Equity Placement after Capital Reduction

• Main Authors: Lee, YaoMing, 李耀民
• Other Authors: Lin Lin
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/72486778811946467657

碩士 === 國立暨南國際大學 === 管理學院經營管理碩士學位學程碩士在職專班 === 101 === The research investigates the operation performance and announcement effect of the firms adopted the capital reduction to adjusted the financeal structure. The sample is divided into two subsamples to examine the difference if the firms have executed the private equity placement after capital reduction. We estimate the abnormal return in short-term when the capital reduction announced, and compare the long-term stock performance between capital reduction sample with private equity placement and general private equity placement. The results show that the capital reduction is useless to operation, and there is negative reaction after the event. Second, regardless of the capital reduction policy, the long-term performances of the private equity placement are both postive. Finally, firms with high debt ratio, low cash flow ratio and high degree of capital reduction have higher probability to adopt private equity placement.