The Performance of Firms that Issue Convertible Bond: an Empirical Analysis of Issue Terms and Financial Characteristics

• Main Authors: Chou, Shu-Ping, 周舒屏
• Other Authors: 張仲岳
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/63895930822247446605

碩士 === 國立臺北大學 === 會計學系 === 101 === This paper examined the impacts of company types, announcement effect and historical operating performance on the operating and stock returns performance of domestic convertible bond issuers from 2002 to 2011. The empirical evidence showed that: (1) the operating and stock returns performance of all sample companies declined after issuing convertible bond. However, firms with positive net cash had a better stock returns performance than those with negative net cash; (2) announcement effect was positively related to the post-issue stock returns performance; and (3) historical operating performance was negatively related to the operating performance after the issuing. In conclusion, the results suggested that different types of firm have different post-issue performance and the stock market reaction provides information on issuer’s future performance.