| Summary: | 碩士 === 實踐大學 === 企業管理研究所 === 88 === To reach our goal of being a financial center of APEC , it’s an important step to open the stock market for foreign investment . After doing that , our country could face and react the trend of freedom and internationalization of environment abroad. And individual investors will be back to the positive attitude toward investment .
In order to understand what role the foreign investment plays , the author uses the “event study “ method to research whether there is signaling effect on the opening of foreign investment limited to stocks . The Author also wants to know whether investors can earn abnormal return , and analyze the meaning the effect of this information to the market. The author uses ARCH and GARCH models further to probe if the change of foreign investment ratio could control the fluctuation of all kinds of stock prices .
The result of our research are :
1. When we announced to execute the opening of foreign investment limited to stocks ,there is no signaling effect on all kinds of stocks.
2.The investors can’t earn any abnormal return by tracking the signal.
3.The more increase of foreign investment to stocks , the more we could definitely control the fluctuated prices of other kinds of stocks like concrete , plastic , mechanic , chemical , glass , paper , steel , rubber , shipping and sightseeing . And there is no effect on other ones.
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