| Summary: | 碩士 === 元智大學 === 商學碩士班(會計學程) === 101 === This thesis examines the impact of corporate characteristics on the issuance of convertible bonds. The paper adopts the method of Rhodes-Kropf, Robinson, and Viswanathan (2005) who decompose the market-to-book ratio into growth opportunities and mispricing components, and use these two factors to examine their influence on convertible bond issuance. Furthermore, the paper tests the abnormal returns in the following year after issuance and post-issue operating performance period. The empirical results find that firms with growth opportunities tend to issue equity-like convertible bonds and that firms issuing convertible bonds have negative abnormal returns. Moreover, the companies with high-growth opportunities portfolios have better abnormal returns than companies with low-growth opportunities portfolios. In contrast, no relation can be found with regard to the mispricing-factor effect. As to operating performance, firms with higher growth opportunities perform better in the three years after the issue date, but firms with higher mispricing perform worse in the following two years.
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