The Effect of Capital Reduction on Stock Price

• Main Authors: HUANG, HSIU-CHU, 黃秀珠
• Other Authors: LIU, CHIH-LIANG
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/snvz4b

碩士 === 國立雲林科技大學 === 財務金融系 === 106 === This study is to investigate the abnormal remuneration of the company's stock price after the capital reduction of Taiwanese listed companies from 2006 to 2017. During the announcement of capital reduction, the market reaction is ill-performed in cumulative abnormal returns. However, it is not always the case. The stock returns of some other companies increase in the capital-reduction announcement days because they have gained market favor after the structure is improved. Considering different reasons for capital reduction, after the announcement date, the stock returns also showed signs of improvement. The cumulative abnormal returns of companies for reductions in capital loss are negative and positive for those considering window dressing for financial reporting, losses and cash reductions respectively. This study further explore effects of capital reduction with case studies on the earnings and financial ratios during the capital reduction periods.