Seasoned equity offerings, return of capital and agency problem: Empirical evidence from Taiwan

IF 5.5 Q1 MANAGEMENT

Asia Pacific Management Review Pub Date : 2022-06-01 DOI:10.1016/j.apmrv.2021.05.006

Yu-Chiung Chen , Jin-Tan Liu

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引用次数: 6

Abstract

Seasoned equity offerings (SEOs) and return of capital (ROC) are activities carried out by listed companies in the capital market. The decision of the company manager to engage in SEOs and ROC is actually in the scope of the agency mechanism. This paper explores the characteristics of SEO and ROC companies and whether SEOs and ROC will affect the company's performance and whether the agency problem will (partially) mediate the impact of SEOs and ROC on company performance. We use the annual data of domestic (Taiwan) listed companies from the Financial Supervisory Commission website and the Taiwan Economic Journal for the 2000–2018 period and adopt the Fama-French three-factor asset pricing model to hierarchical regression analysis to study the mediating role of the agency problem. The empirical results support that SEO companies are mostly in the expansion or growth stage and SEOs reduce company performance, both in the short term and long term. After considering free cash flow, the effect of SEOs on performance declines. The results support that ROC companies are mostly in decline stage and ROC increases long-term company performance. However, free cash flow does not affect the performance of the companies engaging in ROC. This research combines SEO and ROC data, and it is based on the perspective of the agency problem so that we can understand the impact on company performance.

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股权增发、资本回报与代理问题:来自台湾的经验证据

股权增发(seo)和资本回报(ROC)是上市公司在资本市场上进行的活动。公司管理者从事seo和ROC的决策实际上是在代理机制的范围内。本文探讨了SEO和ROC公司的特点，以及SEO和ROC是否会影响公司绩效，代理问题是否会(部分)中介SEO和ROC对公司绩效的影响。本文利用金融监督管理委员会网站和台湾经济日报2000-2018年期间的国内(台湾)上市公司年度数据，采用Fama-French三因素资产定价模型进行分层回归分析，研究代理问题的中介作用。实证结果支持SEO公司大多处于扩张或成长期，SEO降低了公司绩效，短期和长期都是如此。考虑自由现金流后，seo对业绩的影响下降。结果支持ROC公司大多处于衰退阶段，ROC提高了公司的长期绩效。然而，自由现金流对从事ROC的公司的绩效没有影响。本研究结合SEO与ROC数据，并基于代理问题的视角，以了解对公司绩效的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asia Pacific Management Review MANAGEMENT-

CiteScore

8.00

自引率

4.50%

发文量

期刊介绍： Asia Pacific Management Review (APMR), peer-reviewed and published quarterly, pursues to publish original and high quality research articles and notes that contribute to build empirical and theoretical understanding for concerning strategy and management aspects in business and activities. Meanwhile, we also seek to publish short communications and opinions addressing issues of current concern to managers in regards to within and between the Asia-Pacific region. The covered domains but not limited to, such as accounting, finance, marketing, decision analysis and operation management, human resource management, information management, international business management, logistic and supply chain management, quantitative and research methods, strategic and business management, and tourism management, are suitable for publication in the APMR.