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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