The Analysis of the Relationship between Credit Rating and Investment Performance

• Main Authors: Yen-Hsiang Wang, 王彥翔
• Other Authors: Yen-Sen Ni
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/09277843195135483595

碩士 === 淡江大學 === 管理科學學系碩士班 === 102 === In recent years, more and more financial instruments are introduced into the capital markets. Thus, many market participants invest their capital into stocks, bonds, and derivatives. However, individual investors, in general, are lack of information for stocks and this results in losing money in their investments. Thus, the purpose of this study is to explore more valuable information in term of the information released in public as the reference for investing stocks listed in Taiwan stock exchange. In this study, we explore the relationship among credit rating, corporate governance, and financial statement variables. The results reveal that the firms with lower credit rating have higher rate of returns; and those in the firms with higher credit rating, on the contrary, have higher rate of returns. In addition, we also reveal that the debt ratio, net profit rating, and firm values have significant impacts on stock returns. As a result, market participants mayinvest stocks by taking the credit rating and other financial indicators into account.