| Summary: | 碩士 === 國立宜蘭大學 === 應用經濟與管理學系應用經濟學碩士班 === 103 === The article aims to analyze the information and meanings of Stock Kings (The highest price stock in Taiwan Stock Market.) As the stock being the king, the press will release a lot of related information to attract investors’ attentions. Gadarowski (2002) points out that the stock turns into a negative reflection when the companies receive large attention. Furthermore, the Stock kings usually features high price of earning ratio and high price to book ratio. Based on the views of behavioral finance and the indicator of traditional finance, we find that there will have a negative impact on stock return. Thus, this context explores the presentation of stocks return by the event study when a stock being the king, and analyzes the different reflections of different companies with the cross-section analysis in different symbol.
The outcome shows that after most of the stock being the king, it comes to cumulative average abnormal returns below 0. But we find the cumulative average abnormal returns about 40 days after the event day, the Stock King which is initial public offerings with the cumulative average abnormal returns over 0 in the short time. To discuss about the stock which is the first time being the king, it goes up to the highest 2.5 percentage, and the IPO 31.06%. When a portfolio’s first time to be the king but not the IPO, it will have the positive cumulative average abnormal returns with significant level only on the event day then after that it falls. The investments can determine the stocks of non-first time to be king that gives signal information and the reference of selling when the information or news appear on the market. At that time you can try to make short position or bearish.
|
|---|
