Research of stock price and financial performance on Taiwanese Public Corporations--From the perspective of operational headquarters.

• Main Authors: HSIEH MENG-TSANG, 謝孟倉
• Other Authors: 陳俊郎
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/20389860249952308915

碩士 === 長榮大學 === 經營管理研究所 === 92 === To cope with the -2.2 % of economic growth rate and rapid uprising unemployment rate in the year 2001, Taiwan government promoted the policy for Taiwanese and global enterprises to set operational headquarter in Taiwan and thus attract them to keep on investing in Taiwan, which will enhance both the economic growth rate and employed population. Firstly introduced in year 2002 and with more than two years of effort in putting it into practice, the tax benefit and administrative incentives related to the operational headquarter policy have successfully led to the results that more than 180 different companies have decided to base their operational headquarters in Taiwan. People often question about if the running of operational quarter will enhance the business performance and bring in better economic benefits. As a result, in this paper, the event study methodology, commonly adopted in financial accounting case study, is used to study the responses of stock market to the share prices of companies including whose operation headquarter policies are announcing or already put into practicing. Meanwhile, the statistical method is adopted to analyze the financial performance of companies that have already based their operation quarters in Taiwan. The financial performance analysis included that of the year before and the year after the year of establishing operation headquarters. The conclusions of this paper can be summarized as the followings: 1.Regarding to the market responses to the news of operation headquarter announcement, we knew from the event study methodology that investors reacted positively to listed companies that met the criteria of corporate operational headquarter policy The significantly positive reward phenomenon were identified on the next days to the days of companies announcing their operational headquarter policies. 2.After companies getting approvals of operational headquarter policies from the minister of economic, stock market reacted on the following day with significantly positive abnormal return. This indicated that companies that established their operation quarters (in Taiwan) are highly regarded in the stock market. 3.Found from the financial performance analysis that obtained from the year before the year of establishing operational headquarter to the year after establishing the operational headquarter, the inventory turnover rate, revenue growth rate and rate of return on total asset of the setting year of operational headquarter were all better when comparing their counterparts of the past. This can be used to explain the reasons why companies that have established operational headquarters and made great progress in dealing with globalization can greatly improve their business performance.