Factors on Capital Reduction of the Firm
| Autor: | Ching-lung,Hsiao, 蕭景隆 |
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| Rok vydání: | 2009 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 97 This paper mainly analyzes the factors of effects on capital reduction through different methods by firms. “Capital reduction_corporate law to cover deficit”, ”corporate law to distribute cash” and “write off treasury stock – to maintain the credit of a firm and stockholder's equity” are adopted as the methods. From the result of the examination, when a firm with a large size, a low leverage ratio, a high z-score, corporate law to distribute cash would be chosen as the method of capital reduction, in order to avoid a low EPS causing by a high capital. On the contrary, a firm with a high EPS, a low M/B ratio and a low leverage ratio would prefer to reduce capital through stock repurchases for stockholder’s equity and stock price. Moreover, with a small size, a high leverage ratio, a low z-score and a low EPS (the EPS even is a minus), a firm might encounter financial crisis, or according to the law, corporate law to cover deficit should be the method of capital reduction. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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