A Study of Capital Reduction for Reducing Losses Following Capital Increase of Taiwan Listed Companies

[[abstract]]在台灣，除了證交法的庫藏股減資之外，尚有公司法之減資，其可分為兩類：彌補虧損減資與現金減資。彌補虧損減資為當公司經營不善，避免自家公司股票打入全額交割股，通常都會採取減資的作法來彌補虧損，以便提昇公司的淨值，保障股東權益。由於只是單純帳面上的調整，所以又稱為「形式上的減資」。現金減資利用現金減資退還股東股款提昇股東權益和每股盈餘。不過現金減資會造成公司資產與股東權益的變動，是為「實質上的減資」。我們先整理比較彌補虧損減資、現金減資與庫藏股減資(依證交法)三種公司事件研究之市場反應差異，發現彌補虧損減資公司在事件期前，到事件期後，乃至後面一段時期，股票異常報酬充滿戲劇性的變化，值得再深入繼續研究。單純彌補虧損減資無增資之公司（簡稱減資公司）與彌補虧損減資且再增資之公司（簡稱再增資公司），在何種狀況下，公司只有單純彌補虧損減資而沒有再增資。減資公司與再增資公司兩者在績效上有無明顯的不同？兩者個別影響市場是正面或負面反應的決定因子為何？而其影響股票市場反應(異常報酬)之公司特質或財務特質為何？此為本篇研究想探討的議題。為了避免樣本選擇偏誤（sample selection bias）的問題發生，本篇計量方法欲利用Heckman（1979）所提出的Heckman二階段估計法（Heckman Two-Stage Estimation Procedure），同時比較OLS回歸與Heckman二階段估計法有無明顯之差異。[[abstract]]In Taiwan, there are different meanings in capital reducing, one defined by Security and Exchange Law(S.E.L.), the other two by the Corporate Law. According to the latter, capital reducing can be divided into two types： capital reduction for reducing losses and capital reduction by cash. The former one is the method for a bad operating performance company to offset losses to avoid stocks of company into full-cash delivery stock in order to enhance the net worth of a company and protect the interests of shareholders. Since it simply adjusts on the books, it can also be called as "Formal Capital Reduction ". Capital reduction by cash is the method for a good company that has large capital that it can’t enhance the growth of a company. It uses the method of capital reduction by returning cash to stockholder to enhance equity and earnings per share. However, the capital reduction by cash will cause changes in assets and equity, it is also called as "Announced Capital Reduction ". Initially, we compares the market reaction of events among capital reduction for reducing losses, capital reduction by cash and S.E.L. capital reducing using the event study. We found that stock abnormal return jumps on the announcement based on the capital reduction for reducing losses. The return then drifts down before beginning to increase in late announcement period. Note the dramatic fluctuation in these situation, this observation leads to the beginning of the study. This study is to investigate that what reasons for bad companies to decide to execute capital reduction for reducing losses or capital reduction following capital increase. We would like to know the companies of the two types whether performance is significantly different. What factors affect the difference of operating and stock performance between the above two execution? Also, response to the situation on the market around the announcement of capital reduction is the issue we investigate. This study adopts the “two-step estimation procedure” of Heckman (1979), in order to alleviate selection bias problems. We will compare the differences of results between the two-step method and traditional OLS.[[note]]NSC100-2410-H327-00