The Effect of The Financial Holding Company¡¦s Value for Their Issuing European Convertible Bond
Though there were many international paper on the European Convertible Bond¡]ECB¡^. Most of them focus on the electronic industry. Financial industry was excluded. A financial holding company made the good use of international source by issuing ECB overseas under the pressure of achieving internationalizes. The purpose of this study is to explore the distinctions of the financial holding companies who have announced issuing European Convertible Bond¡]ECB¡^during 2002 to 2003. To identify the financial character and evaluate the influence on the companies¡¦share price followed by the issuance of ECB from the statistic viewpoint of financial analysis and the dynamic viewpoint of the impacts on the company¡¦s value.
There are two parts of the thesis. The first part is about the effect of the financial holding company¡¦s value for their issuing ECB by using the event study. Using probit and logic regression analysis to examine the effect of various financial factors in decision-making process of issuing ECB abroad did the second part. The financial character of financial holding companies with ECB issuance have significant differences in compared to those who have not yet issued ECB.
1.With¡¨Event study¡¨the results shown that there is no significant effect in the short term but cumulative average abnormal return is negative in the long term on the announcement data in exiting shareholders stake of issuing ECB.
2.At 5% significance level¡Aempirical results shown that listed financial holding companies with ECB issuance have significant differences in debt ratio, EPS and firm size compared to the companies who have not yet issued ECB.
Advisor:David Shyu; Jen-Jsung Huang; Henry Y. Lo
School:National Sun Yat-Sen University
School Location:China - Taiwan
Source Type:Master's Thesis
Keywords:corporation character announcement effect event study european convertible bond
Date of Publication:06/28/2004