The Relation between Typhoons and Taiwan Stock Market

• Main Authors: Ying-Chieh Chen, 陳瑩潔
• Other Authors: 梁婉麗
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/05415793013509609858

碩士 === 元智大學 === 商學碩士班(財務金融學程) === 100 === This paper investigates the relation between typhoons and Taiwan stock market. The empirical results show that typhoon day off would result in the negative effect of stock market. This result implies that the unexpected holiday of typhoon results in the operations of firms to be suspended (i.e. stoppage loss) and thereby indirectly decreases the stock return. In addition, the landfall typhoon has larger loss and thus results large negative stock return than non-landfall typhoon. The intensity of typhoon has the positive relation with the loss amount, but the intensity of typhoon does not have positive relation with the abnormal return reflects that stock market is not influenced by the direct loss amount of typhoon. Typhoon has higher uncertainty and thereby the investors have less incentive to invest the stock during typhoon period. The result shows that the uncertainty of typhoons with unexpected holiday is relatively larger than typhoons with expected holiday. Typhoon with unexpected holiday also has the lower abnormal volume than typhoon with expected holiday.