A Research of Abnormal Return of the Announcement Effect that OTC stocks Transfer to List in TSEC Market

• Main Authors: chao Yuan-Li, 趙苑莉
• Other Authors: Cheng Jao-Hong
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/96965131548936949024

碩士 === 義守大學 === 管理科學研究所 === 89 === The Taiwan Stock Exchange (TSE) market developed prior to Over—The- Counter (OTC) market; especially, the trading value of OTC market was less than 15% of that of TSE market in Taiwan. This study discussed the short-term price behavior of listing change in Taiwan. The samples used in this study consisted of 99 companies for listing change during from 1992 to 2000. The motivation of listing change, according to the past study, is to enhance liquidity, image of corporate, and wealth of stockholders and then to facilitate raising capital. Most of these samples have short listing period in the OTC market. This phenomenon implies that these companies mean to use the OTC market as a shortcut to TSE? This study adopts the event study method and Fama-French approach to test the AR and the CAR of the short-term price behavior which separate by new rules from old rules of listing change. According to the new rules of listing change announced by TSE in May, 2000, listing change in TSE market by lots of application is easy to pass for the OTC companies in the future. The observed results are summarized as followings: 1. There are no apparent evidences to prove positive AR or CAR in the short-term trend. 2. The phenomenon of hot-moon effect, like IPO companies, for listing change don’t exist. 3. In the real trade system, the complex procedures of listing on TSE market is not helpful to the public investors for the open companies, like those listed in OTC.