The relationship between interest rate changes and stock price of financail insurance stock and nonfinancial insurance stock

• Main Authors: Yun, Meng-Dong, 雲盟東
• Other Authors: Wu Yung-Sen
• Format: Others
• Language: zh-TW
• Published: 1996
• Online Access: http://ndltd.ncl.edu.tw/handle/63787384061280621085

碩士 === 國立交通大學 === 管理科學研究所 === 84 === The main purpose of the thesis is to study information effect ofinterest rate changes. First, stock market will be divided into two groups ,one is financial insurance stock, the another is nonfinancial insurance stock, then observe investor''s response when Central Bank declares the change of interest rate. Second, compare financial insurance stock with nonfinancialinsurance stock to show which kind stock is more fluctuant. The followings are obtained in the study: 1.There is 「information effect」of interest rate change in Taiwan stock market and negative association between interest rate change and stock price change . 2.Investors usually won''t expect the increase of interest rate for the reason that there is fewer news about the increase of interest rate in the media. Therefore, when Central Bank announces that interest rate rises, both stock price of financial insurance stock and nonfinancial insurance stock decrease significantly in the same day. 3.Investors usually will expect the increase of interest rate for the reason that there is more news about the decrease of interest rate in the media. Therefore, when Central Bank announces that interest rate decreases both stock price of financial insurance stock and nonfinancial insurance stock don''t decrease significantly in the same day. Because stock market has reacted in the advance. 4.When Central Bank declares the increase (decrease) of interest rate , the financial insurance stock will decrease (increase) less than nonfinancial insurance stock in the observation period .