The impact of news on Taiwan Stock Index

• Main Authors: YU,ZHENG-HUANG, 余政遑
• Other Authors: Tsai Hsueh Huei
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/88254163072420717972

碩士 === 正修科技大學 === 財務金融研究所 === 102 === Taiwan stock market is influenced by the gradual liberalization of the financial markets, the rapid dissemination of news, and economic and political events, so do investors’ confidence. Domestic political and economic influence Taiwan stock market to some extend that financial institutions and investors usually pay close attention to it. This research focuses on the influence of recent political and economic events in relation to the stock performance of financial, electrical, and mechanical sectors in Taiwan. By discovering the influence of such events, the result can serve as a reference for investment decision-making. It is found that stock market in Taiwan is in line with the weak form efficient market; investors are merely influenced by political or economic events. However, there are some exceptions as listed below. News related to a significant declined on exports; issuing consumption coupons to stimulate the economy; the controversy over the presidential election in 2004; early resignation of the Executive Yuan in 2008; presidential inauguration in 2004. Except for the events listed above, investors tend not to overreact to political and economic events, especially those can be predicted.