The Relationship between European Convertible Bond Issues and Corporate Governance: A Study of Electronics Companies in Taiwan

Review of Pacific Basin Financial Markets and Policies, Vol. 12, No. 2, pp. 309-359, 2009

Posted: 24 Apr 2010

See all articles by Cheng-Few Lee

Cheng-Few Lee

Rutgers University, Newark, School of Business-Newark, Department of Finance & Economics

Date Written: June 1, 2009

Abstract

The purpose of this paper is to study the relationship between European convertible bond issues and corporate governance. After reviewing the regulation of Taiwan's ECB issues, we use the data from publicly traded electronics stocks from Taiwan to perform the empirical study. We found that the larger the company's ECB issue size, the higher the premium at the time of the ECB issue. In addition, we also found that the higher the company debt ratio, the lower the ECB issue premium. Finally, we found that the larger the company market value, the larger the size of the ECB issue.

Keywords: European convertible bond, corporate governance

Suggested Citation

Lee, Cheng-Few, The Relationship between European Convertible Bond Issues and Corporate Governance: A Study of Electronics Companies in Taiwan (June 1, 2009). Review of Pacific Basin Financial Markets and Policies, Vol. 12, No. 2, pp. 309-359, 2009, Available at SSRN: https://ssrn.com/abstract=1487919

Cheng-Few Lee (Contact Author)

Rutgers University, Newark, School of Business-Newark, Department of Finance & Economics ( email )

111 Washington Avenue
Newark, NJ 07102
United States
732-445-3907 (Phone)
732-445-5927 (Fax)

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