| dc.description.abstract | As the practice of ESG investment research by regulators has become more and more mature, driven by various factors such as stricter supervision and the opening of the financial market, ESG in Taiwan and the world has developed in the financial market in recent years. Based on the premise that both ESG and SEO underpricing are related to information asymmetry, this paper takes the Taiwan market as an example to study the relationship between a company′s ESG rating and the company′s SEO underpricing.
The empirical results show that, except for the UNP1 model, which is not significant, UNP10 and UNP20 have significant negative correlations with ESG, E, and S, which are in line with hypotheses 1 to 3 in this paper. This means that the improvement of ESG rating can indeed reduce the information asymmetry between companies and investors. After adding the interaction effect of capital expenditures purpose and ESG as a new control variable, the empirical results show that the SEO underpricing of companies that increase capital to expand working capital is higher than that of capital increase to repay debt.
In the part of robustness test, because the research results of Nathalie Dierkens (1991) found that the greater the degree of information asymmetry, the greater the negative announcement effect. Therefore, this part uses the SEO announcement effect to do a multiple regression analysis on the ESG rating and its three sub-ratings. The empirical results show that the announcement effect does show a significant negative correlation with ESG, which is consistent with the results of the main model in this paper. | en_US |