The Research on the Relationship between a Dollar Worth and the Price Discount of Private Equity Placements

• Main Authors: CHANG,RUEI-HONG, 張瑞鴻
• Other Authors: CHEN,MIAO-JHEN
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/60208874655472009813

碩士 === 國立聯合大學 === 經營管理學系碩士班 === 104 === This study aimed to investigate the relationship between marginal value of cash holdings and price discount of private equity placements.Sample objects are listed companies of private equity placements in Taiwan and sample period from March 2002 to December 2014. Our results significantly show that a relationship between the marginal value of cash holdings and the price discount of private equity placements is negative.Our results show that private companies in growth stage have a higher evaluation of cash holdings and require the lower price discount of private equity placements than private companies in failing stage.Our results not show that private companies in mature stage have a higher evaluation of cash holdings and require the lower price discount of private equity placements than private companies in failing stage because investors maybe pay more attention to future growth of companies than stable cash flow.Our results show that private companies in growth stage have a higher evaluation of cash holdings and require the lower price discount of private equity placements than private companies in mature stage.Our results show that the relationship between the marginal value of cash holdings and the price discount of private equity placements is positive but not significant in the sample of private replacements in insider.