企業財務特性與可轉換公司債契約設計

Abstract

According to the pecking order theory, business financing cost from high to low are new stock issued, debt financing and internal earning. Convertible bond is one of the debt financing and it owns debt and equity characteristics simultaneously. We use Black-Scholes formula to separate convertible bonds into debt-like and equity-like debt. Then, we apply classified convertible bonds to regress with financial characteristics of other business which hadn’t issue convertible bond ever. The results show business which are large firm size, low slack, high current asset ratio, high market to book value, high growth in asset change, high volatility and low stock return propensity to issue debt-like CB. There are similar results in equity-like CB, however, the stock return isn’t significant. We also considered the specialty of Taiwan capital market and bifurcated into tech and non-tech industry. The study reveals equity-like CB has more significant variables than debt-like CB. Last but not least, we add market condition into our regression model. Firm size and stock return variables have significant in market condition regression. Furthermore, we mixed market condition and industry different together. The result suggests no matter in hot or cold market. CB issued by high tech industry have less significant. There are more significant variables in non-tech industry during cold market. We believe that shows investors will highly concerned the implicit value of embedded option during cold market.