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

Jen-Hung Huang

Department of Management Science, National Chiao Tung University, 1001 Ta Hsueh Road, Hsinchu, 300, Taiwan

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Hyley Huang

National Chiao Tung University, Wintek Corporation, 10 Chien-Kuo Road, TEPZ Tantzu, Taichung 427, Taiwan

Corresponding author.

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, and

Cheng-Few Lee

Rutgers University, 94 Rockefeller Road, Piscataway, New Jersey, USA

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https://doi.org/10.1142/S0219091509001642Cited by:1 (Source: Crossref)

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.

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