A Study on Optimistic about The Extent of Foreign Investment and The Major Constituent Stocks of Taiwan 50 Index

• Main Authors: FU,CHUAN-CHUN, 傅傳君
• Other Authors: CHENG,CHANG-CHUN
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/73916740233724265053

碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 104 === Since 1983, Taiwan government opened the gate for foreign investment to invest in the stock market. The proportion of foreign transactions in the stock market has been occupying an essential point. The impact of foreign investment on the stock market and day multiplier, especially with the trend is closely related to the market index constituent stocks index. Also, index of the stock market is consistent with the trend of Taiwan 50 index constituent stocks. Therefore, the purpose of this paper is to explore the foreign optimistic about the constituent stocks of Taiwan 50 index and the relevance between two parties. In order to obtain realistic results, we used the samples from January 2005 to December 2015 in this paper, total of 84 monthly details. With the other constituent stocks of Taiwan 50 index during specimen Taiwan market capitalization accounted for the weight of the total market value of foreign ownership and total foreign investment ratio and other variables. Based on the results, we concluded the following points: 1. When foreign investors feel optimistic about the market, both of the Net Buying Amount and Net Amount Remitted ratio will absolutely increase. The regression analysis shows that, as long as foreign investment optimistic lift, they will buy constituent stocks of Taiwan 50 index as target shares and both increase the total investment ratio with lifting weights and total market value. 2. The regression analysis shows that no matter how foreign investors optimistic about the market, there’s no relevance between Net Buying Amount, Net Amount Remitted ratio and Taiwan 50 index constituent stocks. So does market value of stocks weight and the amount of change in market capitalization. These factors are not influenced by the level of optimistic. 3. When foreign investors feel optimistic about the market, month of cumulative foreign investment and foreign net buying amount will over the month cumulative net amount remitted ratio. Through long-term regression test and observation, we can get the results of that as long as foreign investors optimistic lift, they will be continued to buy 50 constituent stocks of Taiwan 50 index as target shares and increase weight in total investment ratio.