| Summary: | 碩士 === 中原大學 === 會計研究所 === 89 === Abstract
Recently, Qualified Foreign Institutional Investors (QFII’s) investment in Taiwan blue chip companies has been the most important driving force in pushing up TAIEX. QFII’s distinguished emphasis on financial numbers and its outstanding return have made its investment strategy well perceived in the market. A lot of researches have proved that a better than average return can be obtained if financial-ratio-based performance indicate is used as an investment criteria.
This study is uses 5-year financial statements of 90 listed companies, among which are either in textile or in electronic industries. This study will attempts to address the correlation between QFII holdings and financial-ratio-based investment strategy. The results are as follows:
1.The correlation between QFII holdings and financial performance is significantly positive.
2.If the size of the company is added as an additional variable, the empirical result is still significant. The correlation between QFII holdings and financial performance is also positive, but a negative relationship between the size of the company and QFII holdings has been observed.
3.For those companies which QFII increase in their shareholdings, their financial performance were good; However for those companies which QFII decrease their shareholdings, their financial performance deteriorates. This result supports the argument that the increase/decrease of QFII shareholding on a particular company is a good proxy to the positive/negative change of the company’s financial performance. Hence, QFII are will informed investors.
4.The result indicate that the volatile difference between the financial performance of textile companies and that of electronic companies is significant. Further testing shows that the volatility of financial performance of textile companies is smaller than that of electronic companies. This result supports the argument that electronic industry is more volatile and risky than the textile industry.
5.There are ninety companies splitting into two groups, i.e. high and low performers in this study. The difference of volatility between these two groups is statistically significant. The volatility of high performers is much smaller than that of low performers.
6.The difference of volatility between high and low achievers in textile industry is not significant, while the difference of volatility between high and low achievers in electronic industry reaches significant level. The volatility of high performers is smaller than that of low performers.
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