A Study of Past Financial Performance and Investor’s Behavioral BiaseA Study of Past Financial Performance and Investor’s Behavioral Biase

• Main Authors: Wen-Ying Fu, 傅文瑩
• Other Authors: Li-Lun Liu
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/21600775501080982221

碩士 === 中原大學 === 會計研究所 === 93 === This study is to look into whether the investors would have cognitive bias based on the past financial performance. The deep analyze to see whether the investors believe that the companies which had good performance of stocks are called “Good companies”, and simply look down on the companies which have not well-perform of stocks. To decide whether the company is a growth stock of classify index, we assess on the sale, operating income and the net income. We also look into the company’s past growth and the relationship between the future stock’s remuneration. We want to analyze the investors in the Taiwanese stock market. Do these investors refer the companies as good companies just because their wonderful past financial performance? Does this phenomenon will effect the future stock’s remuneration. We will analyze the next three months, six months and nine months, means twelve’s remuneration. We also test on the original remuneration, Fama and French three factor model and the four factor model. After the experiment, the result showed that the investors do not show optimistic attitude on the high-growth companies. So we suggest the investors to take contrarian strategy, buy the lower-growth stocks, and sell the higher-growth stocks in order to receive the higher remuneration. But if we look at the long-term remuneration, the remuneration will back to average gradually.