The impact of performance and size of company on fluctation of stock price--A Positive Study on Listed Banks in Taiwan

• Main Authors: Liaw, Chi-Fa, 廖啟發
• Other Authors: Hsin-Fu Tsai
• Format: Others
• Language: zh-TW
• Published: 1997
• Online Access: http://ndltd.ncl.edu.tw/handle/73341699230864351771

碩士 === 淡江大學 === 管理科學研究所 === 85 === In recent year as stock market index has shoot from five thousand to eight thousand points,bank stocks have played a played a pivotal role and held the limelight.Among so many choices,how to make a brilliant choice is the key of public concern.A bank will get its scale augmenting by means of capital increase with passage of time to cause transformation of stockholding structure and,in turn,change stock prices. Literature indicate that scholars both at home and abroad have probed into only the influence of business performance upon stock prices and influence of company scale upon stock prices. Not any scholars have looked into the influence of business performance upon stock prices coupled with the variable of the company scale .I''d like to ,therefore,study this to make sure of the change between such factors.The study takes 11 listed banks as samples and covers the period of 1991-1995,takink 25 financial ratios as the indexs to weight perfoemance.Thought factors analysis and grouping analysis,we divide banks into several groups with four index to rate the scale.Thought analysis of principal factors,the sample banks are classified into two groups,big and samll.Further through double -factory variable analysis of stock prices .we conduct positive study and bring up the following findings:(1)Relationship between business performance and stock prices;When the stock prices are subject to influence of business performance ,Chang Hua Bank,Hua Nan Bank,Chinese Bank,Taitung Business Bank and Chinstrust outperform Hsinchu Business Bank,Kaohsiung Business Bank,Tainan Business Bank and Taichung Business Bank in terms of annual return rate of investment.(2)Bank scales and return rate of stock prices vary according to different time . In a bull market ,there will be the so-called "positive scale effect".In a bear market,there be the so-called "reverse scale effect".(3) Investors are advised to watch banks of large scale and good business performance in a bull market. On the contrary,in a bear market ,bank stocks are not covered under the investment portfolio.