The Impacts of Weather Events on the Taiwan Stock Returns of Different Industries

• Main Author: 賴穎緻
• Other Authors: 徐燕山
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/60285570816254826455

碩士 === 國立政治大學 === 財務管理研究所 === 101 === Recently, the concern about climate change has become one of the hottest issues around the world. There are more and more related researches published, using different dimensions to evaluate the impacts of climate change and weather events on economy. In Taiwan, the most frequent weather event is typhoon. In addition, due to the climate change, the modes of typhoons’ rainfalls have changed drastically, making the damages and losses become worse and worse. This paper uses top-10 heavy-rainfall typhoons to identify whether there exists impact of typhoon on the stock returns of different industries in Taiwan. Industries include Cement, Food, Transport, Construction, Automobile, Tourism, Iron and Steel, Energy and Trading and department store, totaling nine industries. According to the sign test results, the impact of typhoons on stock returns is different from industry to industry. Food industry is affected negatively in the whole period. Transport, Construction, and Iron and steel industry have similar pattern, showing positive before the events and reversing to negative after the events. Other five industries present relatively small impacts. All in all, we can say typhoons do have impact on stock returns in Taiwan, but different industries are affected differently. Yet there is no statistical evidence shows that the abnormal returns may differ because of the strength of typhoons, and neither does the time. Using the regression model, we discover that “rainfall” is able to explain some specific industries.