| Summary: | 碩士 === 銘傳大學 === 企業管理學系碩士在職專班 === 99 === After facing global financial crisis and deteriorated financial situation in Europe, Taiwan tries to improve its international trade development by shifting its export destinations from U.S. and Europe to East Asian countries and signing bilateral free trade agreements with them. The later includes signing an Economic Cooperation Framework Agreement (ECFA) with China in 2010. The objective of the study is by the event study to investigate the effect of signing ECFA announcement on stock returns, based on the industries under the early harvest list on the Taiwan side.
The findings are as follows. Firstly, declaration at the first time shows significant abnormal returns as the market treats it as signaling positive information. This is confirmed on sample-in-all and sub-samples. Secondly, after more than a year in cross-strait negotiations and as more information about ECFA is released, the announcement of formal signing ECFA does not provide significantly announcement effect on stock returns.
|
|---|
