The Study of Investment Preference of Foreign Institutional Investors in Taiwan Stock Market Before and After the Financial Tsunami

• Main Authors: Chang Maning, 張麥寧
• Other Authors: Chen Mei-Ling
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/67475253406206724008

碩士 === 大葉大學 === 管理學院碩士在職專班 === 98 === Before and after the financial tsunami, with regard to market risk, size, net market value ratio, the study each explores the relevance between preference for foreign investment on the top five industries in Taiwan’s stock market in turn and separately. The analysis of the foreign investment on the top five industries reveals the magnitude of the investment on both plastics and steel industries depend on the market risk. The higher market risk the industry has, the more preference the foreign　institutional investors have, especially the steel industry is first among all the industries, and plastics industry at its heel；the magnitude of the investment on steel, electronics, and shipping industries depend on the size of the company. The smaller the company is, the more preference the foreign institutional investors have, especially the steel industry take the lead, the electronics and shipping industries follow, and the plastics industry take the rear. By the way, before the financial tsunami, the preference for foreign investment on the plastics industry massed on the larger company, but after the financial tsunami, it might have been otherwise. The net market value ratio might be taken into account by the overwhelming majority of the industries, except by the plastics industry. The higher net market value ratio the industry has, the more preference the foreign　institutional investors have, especially the steel and the electronics industry take the first place, the shipping, financial ,and insurance industries take the second place, the plastics industry take the final place. After the financial tsunami, the market risk would be taken into account by the preference for foreign investment on six main electronics industries, especially the semiconductor industry take the first place, the telecommunication and internet industries take the second place, the electronics spare part industry take the final place. The study each explores the relevance between preference for foreign investment as to the size and net market value ratio would differ because of the classification. The financial tsunami exercised its influence on the preference of foreign investment by means of the contrast between before and after it. The study demonstrates that the preference for foreign investment on electronics industries, especially after the financial tsunami, will be less than ever, and most of the foreign institutional investors will have very pessimistic attitude toward the trend of the electronics industries. But it won't make much difference to other industries whether the financial tsunami broke out or not. We will advise investors to think over the companies about their higher market risk whenever you perform an investment of your capital on the plastics industry；the companies about their higher market risk, smaller size, and higher net market value ratio whenever you perform an investment of your capital on the steel industry；the companies about their smaller size and higher net market value ratio whenever you perform an investment of your capital on the electronics and shipping industries, especially the telecommunication and internet branch of the electronics industry；the companies about their higher net market value ratio whenever you perform an investment of your capital on the financial and insurance industries.