The Impact of Ting-Hsin Provisions on Stock Prices of Listed Chemical Firms

• Main Authors: Liang,Wei-Mao, 梁偉貿
• Other Authors: Chen,Chieh-Shuo
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/z5z9ez

碩士 === 國立彰化師範大學 === 會計學系 企業高階管理(EMBA) === 105 === This study focuses on whether the event of ASE Group related to discharge of waste water and the event related to the legislation of Ting Hsin provisions have information content in Taiwanese stock market. This study uses daily stock returns of Taiwanese listed companies in the chemical industry, and employs the event study to explore investors’ reactions to the discharge of waste water reported and Ting Hsin provisions legislated. The empirical results show that: (1) the companies in the chemical industry have significantly negative abnormal returns after the discharge waste water of ASE Group is reported, implying investors predict that the short-term performation of the chemical industry will be bad because of this serious environmental pollution, and the market reaction seems to underreact, (2) the companies in the chemical industry don’t have significantly negative abnormal returns to the event that Ting Hsin provisions are first reading legally, implying there is no information content for this event, and (3) the companies in the chemical industry have significantly negative abnormal returns before and after Ting Hsin provisions are legislated, implying the market responds in advance and underreacts. Briefly, this study finds that the stock prices in the chemical industry have information content to the serious environmental pollution and severe povisions. Keywords: Ting Hsin Provision, Environmental Pollution, Event study, Abnormal Return