台灣許多企業的績效和公司價值與其財報資訊和公司治理有關。第一篇文章為以財務報表之五力分析來評估發行可轉換公司債的公司，由於有些高科技公司以海外可轉債來籌措資金，是以本研究乃是評估這些發行海外可轉債之公司績效，在本研究中，採用財報的五力分析，其中包含流動比率，負債比率，資產週轉率，淨利率和本益比來評估這些公司的績效。而本研究所採用Technique for Order Preference by Similarity to Ideal Solution (TOPSIS,理想解類似度偏好順序評估法)研究方法，其相當有助於在有限的樣本中選取投資標的，此與傳統的財務研究方法有所不同。是以本研究對此財務領域的相關文獻應有其貢獻，亦為此相關研究有擴展之效。
    第二篇文章為探討是否公司治理會影響外資機構的持股變化的因素，其初步結果顯示，公司治理和財務表現並不影響外資機構持股的變化。然而在採用Censored Panel Data Models (設限的縱橫資料模型)來聚焦於外資持股增加的樣本時，發覺公司治理和財務表現確實會影響到國外機構持股的變化，此結果類似於採用Quantile Regression Models (分量迴歸模型)，高分位的實證結果與低分位的實證結果可能會有所不同。
    綜合言之，第一篇文章以財務報表之五力分析來評估發行可轉換公司債的公司，第二篇文章探討是否公司治理與財報表現會影響外資機構的持股變化。而且也得之有良好財報表現、公司治理的公司為外資持股的重要考量因素，而且也是由一些發行可轉債公司中選取投資標的時之重要考量因素。

This dissertation is to explore whether the information related to financial statements and corporate governance would matter such as screening stocks among the firms listed in Taiwan Stock Exchange for investors or shareholding enhanced for institutional investors. In this study, we incorporate two essays to explore the issues mentioned above.  
    Essay one is to measure the financial performance of overseas convertible bonds according the analysis of five forces retrieved from financial statements, including the current ratio, debt ratio, asset turnover ratio, net profit ratio, and P/E ratio, as convertible bonds are occasionally issued by high-tech firms for raising funds in Taiwan. By using the evaluation method called technique for order preference by similarity to ideal solution (TOPSIS), we reveal the firms with superior performance using a limited sample, unlike the other approaches adopted in finance. We argue that this study will contribute to the existing literature by presenting persuasive results using limited samples, which is rarely explored in the relevant literature. 
    Essay two is to explore the factors that affect the shareholding change of foreign institutions, results showed that corporate governance and financial issues may not be related to the shareholding change of foreign institutions. After employing censored panel data models by focusing on either positive or negative samples in term of the shareholding change of foreign institutions, results revealed that corporate governance and financial performance are related to the shareholding change of foreign institutions for positive samples instead of negative samples, which is similar to that results might not be the same for low quantile or high quantile estimation by using quantile regression models. The above concern seems rarely examined in the relevant literature.   
    In sum, Essay one is to measure the financial performance of overseas convertible bonds according the analysis of five forces retrieved from financial statements. Essay two is to shows that the factors that affect the shareholding change of foreign institutions. In these two essays, we reveal that the firms with better financial performance and corporate governance would be taken into account by foreign institutions to enhance their shareholding as well as be regarded as worthwhile investing targets for the firms issuing convertible bonds.

Contents
Contents	I
List of Tables	III
Chapter 1  Introduction	1
Chapter 2  Evaluating Overseas Convertible Bonds from Financial Statements Using Five Forces Analysis	4

2.1  Introduction	4
2.2  Variable Selected and Measured	6
2.2.1  Variable Selected	6
2.2.2  Measurement of Variables 	7

2.3  Empirical Results and Analyses 	8
2.3.1  Performance Values of the Firms	8
2.3.2  Normalization and Weighted-normalized of the Performance Values of the Firms 	10
2.3.3  The Ideal Solution to the Firms	11

2.4  Summary Remarks	12

References 	13

Chapter 3  Foreign Institution Investors, Shareholding Change, and Corporate Governance	16

3.1  Introduction	16
3.2  Data, Variables, and Methodology	22
3.2.1   Data and variables	22
3.2.2   Model	24
3.3  Empirical Results and Analyses 	25
3.3.1.   Descriptive statistics 	25
3.3.2    Factors affecting the shareholding change of foreign institutions	27
3.4  Summary Remarks	32

References 	33

Chapter 4  Conclusions and Suggestions	39


List of Tables
Table 2-1  Performance values of the eight companies	9
Table 2-2  Normalization of the performance values of the eight companies	10
Table 2-3  Weighted-normalized performance values of the eight companies	10
Table 2-4  The ideal solution A* (and the negative-ideal solution A-) of the eight  companies	11
Table 3-1  Definition of variables	23
Table 3-2  Descriptive statistics	26
Table 3-3  Empirical Results I	28
Table 3-4  Empirical Results II	30

CH2 References
Brigham, E. F., & Ehrhardt, M. C. (2011). Financial management: theory and practice: Cengage Learning.
Chamodrakas, I., & Martakos, D. (2011). A utility-based fuzzy TOPSIS method for energy efficient network selection in heterogeneous wireless networks. Applied Soft Computing, 11(4), 3734-3743.
Chen, C. T. (2000). Extensions of the TOPSIS for group decision-making under fuzzy environment. Fuzzy Sets and Systems, 114(1), 1-9.
Cheng, Y. Y., & Lyu, J. (2003). Risk analysis of the E-business projects: A financial perspective. International Journal of Electronic Business Management, 1(1), 28-35.
Chiou, C. H., Fu, H. P., & Tsai, M. T. (2006). An evaluation on the performance of E-business promotion policy derived from thirteen funded cases. International Journal of Electronic Business Management, 4(2), 152-158.
Dann, L. Y., & Mikkelson, W. H. (1984). Convertible debt issuance, capital structure change and financing-related information: Some new evidence. Journal of Financial Economics, 13(2), 157-186.
De Miguel, A., Pindado, J., & De la Torre, C. (2004). Ownership structure and firm value: New evidence from Spain. Strategic Management Journal, 25(12), 1199-1207.
Dutordoir, M., Lewis, C., Seward, J., & Veld, C. (2014). What we do and do not know about convertible bond financing. Journal of Corporate Finance, 24, 3-20.
Easton, P. D., & Harris, T. S. (1991). Earnings as an explanatory variable for returns. Journal of Accounting Research, 29, 19-36.
Hoffmeister, J. R. (1977). Use of convertible debt in early 1970’s: A reevaluation of corporate motives. Quarterly Review of Economics and Business, 17(2), 23-31.
Jahanshahloo, G. R., Lotfi, F. H., & Izadikhah, M. (2006). Extension of the TOPSIS method for decision-making problems with fuzzy data. Applied Mathematics and Computation, 181(2), 1544-1551.
King, R. D. (1984). The effect of convertible bond equity values on dilution and leverage. Accounting Review, 419-431.
Lee, I., & Loughran, T. (1998). Performance following convertible bond issuance. Journal of Corporate Finance, 4(2), 185-207.
Lee, P. Y., Wu, M. L., & Shen, J. F. (2013). Capital structure for multinational inter- and intra-firm innovation collaborations. International Journal of Electronic Business, 11(3), 212-225.
Lewis, C. M., Rogalski, R. J., & Seward, J. K. (2003). Industry conditions, growth opportunities and market reactions to convertible debt financing decisions. Journal of Banking & Finance, 27(1), 153-181.
Lin, Y. M., Chao, C. F., & Liu, C. L. (2014). Transparency, idiosyncratic risk, and convertible bonds. European Journal of Finance, 20(1), 80-103.
Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221.
Ni, Y. S., Huang, P. Y., & Tung, Y. K. (2012). Does Implementing A B2B electronic money C plan benefit working capital management?. International Journal of Electronic Business Management, 10(2), 122-139.
Palepu, K., & Healy, P. (2007). Business analysis and valuation: Using financial statements. Cengage Learning.
Park, J. H., Park, I. Y., Kwun, Y. C., & Tan, X. (2011). Extension of the TOPSIS method for decision making problems under interval-valued intuitionistic fuzzy environment. Applied Mathematical Modelling, 35(5), 2544-2556.
Pilcher, C. J. (1955). Raising capital with convertible securities. Bureau of Business Research, School of Business Administration, University of Michigan.
Stein, J. C. (1992). Convertible bonds as backdoor equity financing. Journal of Financial Economics, 32(1), 3-21.
Wagner, M., Van Phu, N., Azomahou, T., & Wehrmeyer, W. (2002). The relationship between the environmental and economic performance of firms: an empirical analysis of the European paper industry. Corporate Social-Responsibility and Environmental Management, 9(3), 133.
Wild, J. J., Bernstein, L. A., Subramanyam, K. R., & Halsey, R. F. (2004). Financial statement analysis. McGraw-Hill.
Yue, Z. (2011). An extended TOPSIS for determining weights of decision makers with interval numbers. Knowledge-Based Systems, 24(1), 146-153.
Zeidler, F., Mietzner, M., & Schiereck, D. (2012). Risk dynamics surrounding the issuance of convertible bonds. Journal of Corporate Finance, 18(2), 273-290.
Zhang, H., Gu, C. L., Gu, L. W., & Zhang, Y. (2011). The evaluation of tourism destination competitiveness by TOPSIS & information entropy – A case in the Yangtze River Delta of China. Tourism Management, 32(2), 443-451.

CH3 Reference 
Aggarwal, R., Erel, I., Ferreira, M., & Matos, P. (2011). Does governance travel around the world? Evidence from institutional investors. Journal of Financial Economics, 100(1), 154-181.
Ahmed, K., Hossain, M., & Adams, M. B. (2006). The effects of board composition and board size on the informativeness of annual accounting earnings. Corporate Governance: An International Review, 14(5), 418-431.
Almazan, A., Hartzell, J. C., & Starks, L. T. (2005). Active institutional shareholders and costs of monitoring: Evidence from executive compensation. Financial Management, 34(4), 5-34.
Asness, C. S. (2004). An alternative future: Part II. Journal of Portfolio Management, 31(1), 8-23.
Baik, B., Kang, J. K., & Kim, J. M. (2010). Local institutional investors, information asymmetries, and equity returns. Journal of Financial Economics, 97(1), 81-106.
Barber, B. M., Lee, Y. T., Liu, Y. J., & Odean, T. (2009). Just how much do individual investors lose by trading?. Review of Financial studies, 22(2), 609-632.
Barton, J., & Simko, P. J. (2002). The balance sheet as an earnings management constraint. Accounting Review, 77, 1-27.
Bauguess, S. W., Moeller, S. B., Schlingemann, F. P., & Zutter, C. J. (2009). Ownership structure and target returns. Journal of Corporate Finance, 15(1), 48-65.
Bennett, J. A., Sias, R. W., & Starks, L. T. (2003). Greener pastures and the impact of dynamic institutional preferences. Review of Financial Studies, 16(4), 1203-1238.
Berkman, H., & Bradbury, M. E. (1996). Empirical evidence on the corporate use of derivatives. Financial Management, 5-13.
Block, S. B., & Gallagher, T. J. (1986). The use of interest rate futures and options by corporate financial managers. Financial Management, 73-78.
Borokhovich, K. A., Brunarski, K. R., Crutchley, C. E., & Simkins, B. J. (2004). Board composition and corporate use of interest rate derivatives. Journal of Financial Research, 27(2), 199-216.
Brous, P. A., & Kini, O. (1994). The valuation effects of equity issues and the level of institutional ownership: Evidence from analysts' earnings forecasts. Financial Management, 33-46.
Cai, J., Liu, Y., Qian, Y., & Yu, M. (2015). Information asymmetry and corporate governance. Quarterly Journal of Finance, 1550014.
Campbell, J. Y., Ramadorai, T., & Schwartz, A. (2009). Caught on tape: Institutional trading, stock returns, and earnings announcements. Journal of Financial Economics, 92(1), 66-91.
Chang, C. C., Hsieh, P. F., & Lai, H. N. (2009). Do informed option investors predict stock returns? Evidence from the Taiwan stock exchange. Journal of Banking & Finance, 33(4), 757-764.
Chang, C. C., Hsieh, P. F., & Wang, Y. H. (2010). Information content of options trading volume for future volatility: Evidence from the Taiwan options market. Journal of Banking & Finance, 34(1), 174-183.
Chen, Y. F., Yang, S. Y., & Lin, F. L. (2012). Foreign institutional industrial herding in Taiwan stock market. Managerial Finance, 38(3), 325-340.
Chen, X., Harford, J., & Li, K. (2007). Monitoring: Which institutions matter?. Journal of Financial Economics, 86(2), 279-305.
Chi, C. W., Hung, K., Cheng, H. W., & Lieu, P. T. (2015). Family firms and earnings management in Taiwan: Influence of corporate governance. International Review of Economics & Finance, 36, 88-98.
Chiang, M. H., & Lin, J. H. (2007). The Relationship between Corporate Governance and Firm Productivity: evidence from Taiwan's manufacturing firms. Corporate Governance: An International Review, 15(5), 768-779.
Chung, K. H., & Zhang, H. (2011). Corporate governance and institutional ownership. Journal of Financial and Quantitative Analysis, 46(01), 247-273.
Chou, R. K., & Wang, Y. Y. (2009). Strategic order splitting, order choice, and aggressiveness: Evidence from the Taiwan futures exchange. Journal of Futures Markets, 29(12), 1102-1129.
Claessens, S., Djankov, S., Fan, J. P., & Lang, L. H. (2002). Disentangling the incentive and entrenchment effects of large shareholdings. Journal of Finance, 57(6), 2741-2771.
Cochran, P. L., Wood, R. A., & Jones, T. B. (1985). The composition of boards of directors and incidence of golden parachutes. Academy of Management Journal, 28(3), 664-671.
Dahlquist, M., & Robertsson, G. (2001). Direct foreign ownership, institutional investors, and firm characteristics. Journal of Financial Economics, 59(3), 413-440.
Davis, E. P. (2002). Institutional investors, corporate governance and the performance of the corporate sector. Economic Systems, 26(3), 203-229.
Edmans, A., & Manso, G. (2011). Governance through trading and intervention: A theory of multiple blockholders. Review of Financial Studies, 24(7), 2395-2428.
Eisenberg, T., Sundgren, S., & Wells, M. T. (1998). Larger board size and decreasing firm value in small firms. Journal of Financial Economics, 48(1), 35-54.
Fahlenbrach, R., & Stulz, R. M. (2009). Managerial ownership dynamics and firm value. Journal of Financial Economics, 92(3), 342-361.
Fauver, L., Houston, J., & Naranjo, A. (2003). Capital market development, international integration, legal systems, and the value of corporate diversification: A cross-country analysis. Journal of Financial and Quantitative Analysis, 38(01), 135-158.
Ferreira, M. A., & Matos, P. (2008). The colors of investors’ money: The role of institutional investors around the world. Journal of Financial Economics, 88(3), 499-533.
García‐Meca, E., & Sánchez‐Ballesta, J. P. (2009). Corporate Governance and Earnings Management: A Meta‐Analysis. Corporate Governance: An International Review, 17(5), 594-610.
Gillan, S. L., & Starks, L. T. (2000). Corporate governance proposals and shareholder activism: The role of institutional investors. Journal of Financial Economics, 57(2), 275-305.
Gillan, S., & Starks, L. T. (2003). Corporate governance, corporate ownership, and the role of institutional investors: A global perspective. Journal of Applied Finance, 13(2), 132-143. 
Grinstein, Y., & Michaely, R. (2005). Institutional holdings and payout policy. The Journal of Finance, 60(3), 1389-1426.
Gillan, S., & Starks, L. T. (2007). The evolution of shareholder activism in the United States. Journal of Applied Corporate Finance 19: 55–73.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Jensen, M. C., & Ruback, R. S. (1983). The market for corporate control: The scientific evidence. Journal of Financial Economics, 11(1), 5-50.
Hall, A. D., & Hautsch, N. (2007). Modelling the buy and sell intensity in a limit order book market. Journal of Financial Markets, 10(3), 249-286.
Hasan, I., & Xie, R. (2013). Foreign bank entry and bank corporate governance in China. Emerging Markets Finance and Trade, 49(2), 4-18.
He, J., & Ng, L. K. (1998). The foreign exchange exposure of Japanese multinational corporations. The Journal of Finance, 53(2), 733-753.
Holthausen, R. W., & Larcker, D. F. (1992). The prediction of stock returns using financial statement information. Journal of Accounting and Economics, 15(2), 373-411.
Huang, H. H., Chan, M. L., Chang, C. H., & Wong, J. L. (2012). Is corporate governance related to the conservatism in management earnings forecasts?. Emerging Markets Finance and Trade, 48, 105-121.
Huang, R. D., & Shiu, C. Y. (2009). Local effects of foreign ownership in an emerging financial market: Evidence from qualified foreign institutional investors in Taiwan. Financial Management, 38(3), 567-602.
Huang, P. Y., Ni, Y. S., & Yu, C. M. (2012). The microstructure of the price-volume relationship of the constituent stocks of the Taiwan 50 Index. Emerging Markets Finance and Trade, 48(S2), 153-168.
Jackling, B., & Johl, S. (2009). Board structure and firm performance: Evidence from India's top companies. Corporate Governance: An International Review, 17(4), 492-509.
Jiambalvo, J., Rajgopal, S., & Venkatachalam, M. (2002). Institutional ownership and the extent to which stock prices reflect future earnings. Contemporary Accounting Research, 19(1), 117-145.
Jin, Y., & Jorion, P. (2006). Firm value and hedging: Evidence from US oil and gas producers. Journal of Finance, 61(2), 893-919.
Khanna, T., & Palepu, K. (1999). Emerging market business groups, foreign investors, and corporate governance (No. w6955). National Bureau of Economic Research.
Kiel, G. C., & Nicholson, G. J. (2003). Board composition and corporate performance: How the Australian experience informs contrasting theories of corporate governance. Corporate Governance: An International Review, 11(3), 189-205.
Lee, T. S., & Yeh, Y. H. (2004). Corporate governance and financial distress: evidence from Taiwan. Corporate Governance: An International Review, 12(3), 378-388.
Lin, C. H., & Shiu, C. Y. (2003). Foreign ownership in the Taiwan stock market—an empirical analysis. Journal of Multinational Financial Management, 13(1), 19-41.
Louis, H., & White, H. (2007). Do managers intentionally use repurchase tender offers to signal private information? Evidence from firm financial reporting behavior. Journal of Financial Economics, 85(1), 205-233.
Luo, J. S., & Li, C. A. (2008). Futures market sentiment and institutional investor behavior in the spot market: the emerging market in Taiwan. Emerging Markets Finance and Trade, 44(2), 70-86.
McConnell, J. J., Servaes, H., & Lins, K. V. (2008). Changes in insider ownership and changes in the market value of the firm. Journal of Corporate Finance, 14(2), 92-106.
Mehran, H. (1995). Executive compensation structure, ownership, and firm performance. Journal of Financial Economics, 38(2), 163-184.
Mian, S. L. (1996). Evidence on corporate hedging policy. Journal of Financial and Quantitative Analysis, 31(3), 419-439
Nance, D. R., Smith Jr, C. W., & Smithson, C. W. (1993). On the determinants of corporate hedging. Journal of Finance, 48(1), 267-284.
Ni, Y., & Huang, P. (2015a). Convertible bonds issued in the bear market period: evidence from Taiwan. Applied Economics, 47 (42), 4501-4510.
Ni, Y., & Huang, P. (2015b). Do IPOs matter for price limits? Evidence from Taiwan.  Quarterly Review of Economics and Finance, 58, 74–83.
O’Connell, V., & Cramer, N. (2010). The relationship between firm performance and board characteristics in Ireland. European Management Journal, 28(5), 387-399.
Ou, J. A., & Penman, S. H. (1989). Financial statement analysis and the prediction of stock returns. Journal of Accounting and Economics, 11(4), 295-329.
Rubin, A. (2007). Ownership level, ownership concentration and liquidity. Journal of Financial Markets, 10(3), 219-248.
Sias, R. W., Starks, L. T., & Titman, S. (2006). Changes in institutional ownership and stock returns: Assessment and methodology. Journal of Business, 79(6), 2869-2910.
Yang, T., & Zhao, S. (2014). CEO duality and firm performance: Evidence from an exogenous shock to the competitive environment. Journal of Banking & Finance, 49, 534-552.
Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40(2), 185-211.