| Summary: | 碩士 === 元智大學 === 財務金融暨會計碩士班(會計學程) === 105 === In the financial markets, there are many investment targets for the investors to choice such as stocks, bonds, funds, futures and so on, among which the stock is most widely used by the investors. Literatures from the past have pointed out that during the period of bull market, investors tend to respond to good earnings news faster than bad earning news. On the contrary, during the period of bear market, investors tend to respond to bad earnings news faster than good earning news. Therefore, the pros and cons of corporate governance are further added to this study to make deeper investigation.
Sample analysis is performed on the listed companies of Taiwan from 2009 to 2016. When a company issue earnings announcement for bad news under the bear market, investors will sell out the shares of company with poor corporate governance and high investment risk. Therefore investors react poor corporate governance faster and continuously than superior corporate governance. However, when the company issue earnings announcement for good news, the investor won't exist any difference in share price response as corporate governance will good or bad. In the bull market, whether the company issue earnings announcement for good or bad news, investors respond the merits of corporate governance are no difference.
In general, when the company issue earnings announcement for good news, both good corporate governance and bad corporate governance inflict significant impacts on the investor. Whether the company issue earnings announcement for good news during bear market period or not during the bull market period, both good corporate governance and bad corporate governance inflict no significant impacts to the investor.
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