The Impact of the Policies for Curbing Property Speculation on the Stock Return of the Construction Industry

• Main Authors: Chia-Ju Chen, 陳佳如
• Other Authors: Su-Ming Lin
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/15532032514705293836

碩士 === 國立臺灣大學 === 會計學研究所 === 99 === In order to curb the housing price hike and prevent housing bubble, the government developed a lot of policies. Generally speaking, those policies were predicted to have negative impacts on stock market. Using event study method, this study examines the stock market reactions to the announcements of those policies that blast real estate speculation. This study chooses thirteen event days and classifies them into three categories: luxury tax, vacant land tax and policies proposed by Taiwan’s central bank. Finally, this study explores the relation between the stock cumulative abnormal returns (CAR) of those three categories and firm characteristics separately. This study finds that the stock market reacts negatively when the news of luxury tax policy, vacant land tax policy and policies proposed by Taiwan’s central bank are released. However, the impact of policies proposed by Taiwan’s central bank is less significant than the impact of tax policy. It suggests the tax policy was regarded as a more effective measure to curb property speculation. The regression results indicate: (1) When the news of luxury tax policy are released, for construction companies, CAR is negatively related with inventory-to-total assets ratio and corporate size. (2) When the news of vacant land tax policy are released, for construction companies, CAR is negatively related with land-to-total assets ratio and other inventory-to-total assets ratio, and positively related with market-to-book ratio. (3)When policies proposed by Taiwan’s central bank are released, for construction companies, CAR is negatively related with inventory-to-total assets ratio and corporate size, and positively related with market-to-book ratio.