碩士 國立交通大學 經營管理研究所 88 Financing by convertible bonds (CB) is one of the important way to get money. But for the complexity of the convertible, to estimate the value of CB and to measure the effect of issuance is very difficult. We will study the factors of designing CB's important clauses. At the first, we get know about the status quo of CBs at Taiwan. And we estimate the influence of designing clauses to CB's value. Then, by articles review, we understand the cause of issue CB, the characteristic of the firms, and the effect of issue CB. On the theorical structure of security design, the agency problem may be eased by proper designing bond clauses. And at the condition of information asymmetric, we can also get know about characteristic of the firm by the signaling effect of CB. To study the CB's clauses, we use A. post-conversion equity ownership, B. maturity, C. relative length of call period protection as the endogenous variables of the model. We use three stages least square method (3SLS) to explore the