THE STUDY ON THE DETERMINANTS OF TAIWAN KING STOCKS

• Main Authors: Chao-chin Chen, 陳昭錦
• Other Authors: Yan-zhiWang
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/98817116954327458318

碩士 === 元智大學 === 管理碩士在職專班 === 100 === With the progressive development of financial markets, Taiwan has rapid economic development and the stock market is the focus of public attention. However, there are many factors affecting the volatility of share price and the very little information is available to the investing public. The present study attempts to collate the financial characteristics of the best performing stocks according to the ratios of the various financial statements in order to investigate the deciding factors of the best performing stocks in Taiwan. The present study aims at investigating the listed and OTC companies in Taiwan and the period determined for the study is from 1991 to 2010. Firstly, the traditional measure indicators in financial statements, including ‘financial structure, solvency, management ability, profitability, R &; D intensity’, are taken as the variables of the study. Secondly, t-test and Pearson correlation coefficient are used to analyze the degree of correlation between variables. After the collations and analyses of the data, the empirical results are as follows: 1. The best performing stocks have better performance than the control group with respect to the return on assets and return on equity Because the enterprises having the best performing stocks have larger advantages in the operational aspects, the results of operation they can produce after their investments in assets can become more abundant. It means they have stronger ability to apply their assets to produce more profits. Therefore, the best performing stocks have better performance than the control group with respect to the return on assets. Besides, because the enterprises having the best performing stocks have stronger operational advantages, they also have better performance than the control group with respect to the return on equity. It’s exactly the enterprises having the best performing stocks can create more profits for their shareholders, the investing public are more willing to buy their shares with higher prices. 2. No significant difference between the best performing stocks and the control group with respect to the performance of accounts receivable As to the performance of accounts receivable turnover in days, it is usually affected by the industry characteristics, economic situations, and even the status of the suppliers of the industry in question. According to the results of the present study, it shows that these is no significant difference between the best performing stocks and the control group with respect to the performance of accounts receivable.