The Impact of Investment Announcements on Shareholders’ Wealth and Performance Analysis：Evidence from Electronic Firms Invested in China

• Main Authors: Nien-Feng Li, 李年豐
• Other Authors: Kuo-Cheng Huang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/5m2g9b

碩士 === 銘傳大學 === 財務金融學系碩士班 === 92 === Taiwanese companies have been increasing investment in China these years. The investment effects are ambiguous for some researches. This paper tries to focus on electronic industry which investment behavior on China with optimism. I collect 101 samples from listed electronic firms in TSEC and divide them into two groups; they are optimist firms with higher historical capital expenditure and realistic firms on the opposite. And to examine the announcements effects while they invested in China since 1996 to 2003. The results show that there exist positive stock returns with announcement of optimistic firms. But there is no significant stock price response with realistic firms. Besides, the operating performance also shows differences. The average EPS of optimistic firms is significant higher than the realistic firms. But the ROA and ROE are lower with the optimistic firms due to the increasing capital expenditure and stock equity inflated.