Some new evidence on bond initial public offerings in the Taiwan Stock Exchange: An industrial perspective

Mei-Chu Ke, Tung Liang Liao and Hong-Ming Hsu

Physica A: Statistical Mechanics and its Applications, 2007, vol. 378, issue 2, 357-373

Abstract: This study examines the determinants of types of bonds at the initial public offerings (IPOs) for the Taiwan Stock Exchange (TWSE). From an industrial perspective, R&D expenditures are mainly positively related to issuing straight bonds and future growth opportunities to convertible bonds for electronic firms. In the non-electronic industry, firms with significant financing needs are more likely to issue convertible bonds, whereas those without such requirement are more likely to issue straight bonds. It is also found that electronic firms convey a significant negative signal to the stock market, while non-electronic firms experience an insignificant stock price response surrounding the announcements of the bond IPO.

Keywords: Bond initial public offerings; Multinomial logit model; Event study (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:378:y:2007:i:2:p:357-373

DOI: 10.1016/j.physa.2006.12.007

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