How 'Capital Reduction Policy' of Different Types of Listed Companies in Taiwan Affect Investors' Rate of Return
| Autor: | Wei-ling Cheng, 鄭為齡 |
|---|---|
| Rok vydání: | 2010 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 98 This research focuses on the impact of different types of reduction on stockholders'' equity return. The data used in this research include the companies that had capital reduction from the year 1999 through 2009. We also compare the financial ratios of the before and after reduction and the resulting stock price change due to the announcement. The study shows that capital reduction to compensate loss and the share-in -stock reduction lead to the significant rise of debt ratio. This means that most reduction was done through borrowing money. One year after the cash capital reduction to make up for the loss we have found that EPS and Roe clearly goes up, which indicates the improvement of financial structure. But in company operation, and profitiblitlty, and NI/S, the change is minimal, and this means capital reduction does not actually affect company operation. Furthermore, when examining the excessive return 15 days after the announcement, it is found the average excessive returns are -0.3%, -0.037% and 18%. The standard deviation is 1.06%, 0.48%.and 0.46% respectively. Under t test, we find that loss compensation capital reduction shows negative return. Under cash capital reduction, even though the excessive return is negative, it is not significant. However the share –in- stock capital reduction, draws in more positive excess rewards. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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