| Summary: | 碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 93 === This paper examines the equity price effects from allowing the entrance of foreign firms into Taiwanese life insurance markets. Prior to 1986, local firms, a total of eight, dominated the life insurance market in Taiwan. To comply with the globalization trend and pressure from foreign governments, the Taiwanese authority has gradually opened its life insurance market to foreigners and lessened overseas investment restrictions for local firms. Utilizing a methodology of event study and listed firms as the main sample, this research has examined whether a price anomaly exists before and after the news release. The empirical results demonstrate that stock price has fully reflected the information and no abnormal return exists. In other words, investors cannot obtain extra profits by using this public announcement information. Long before its official announcement reached the market, investors have already expected it in advance.
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