Agency theory and wealth effect of flotation methods in seasoned equity offerings: evidences from Taiwan stock market

• Main Authors: Cheng, Yu-Hung, 鄭宇宏
• Other Authors: Wang, Keh-luh
• Format: Others
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/4rayhd

博士 === 國立交通大學 === 財務金融研究所 === 101 === During the expansion and development of corporate, its demands of funds increase. Seasoned equity offering (SEO) is one of the usual approaches to raise funds, and typical underwriting includes public subscription and bookbuilding subscription. In Taiwan stock market, there is a negative reaction under a public subscription and positive reaction under bookbuilding subscription. This paper examines how decisions of different underwriting approaches taken by firms affects its market value within 638 samples from 14 tiers, 581 public subscription samples and 57 underwriting subscription samples. The results suggest that although there is information asymmetry in the Taiwan stock market, obviously market investors are more concerned about the agency problem.