本文主要目的是討論減資後股價表現

This paper’s main propose is to discuss the share price performances after companies to reduce capital by capital reduction. In 2002, Formosa International Hotels is the first company in Taiwan to return cash back to investors by capital reduction and Formosa International Hotels continued to return cash to its investors by capital reduction in 2007. From Formosa International Hotel’s share price perspective, it showed positively and encourage other companies to follow its steps to do capital reduction. There is another incentive, tax free, when companies have limited investment target, limited industry growth rate and excess cash position. This paper used share price performance for 30 days, 90 days and 180 days after resuming trading for capital reduction. We collected 298 samples from stock exchanges, Taiwan Stock Exchange (TWSE) and Taipei Stock Exchange ranged from 2011 to 2017 which is available from stock exchange website. We see positive share price performance compare to TWSE index.

Abstract………………………………………………………………………………..…… 3
List of Table………………………………………………….………………………..…… 5
List of Chart……………………………………………………………..………………… 6
1. Introduction………………………………………………………………………..... 7
2. Literature Review………………………………………………………………….10
3. Data and Methodology……………………………………………….……….. 16
4. Empirical Results………………………………………………………………….. 18
5. Conclusions……………………………………………………………………..….. 24
Reference………………………………………………………………………………… 29

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