The Market Effect for the Listing of the Best Small Companies: the Case of Forbes 200

• Main Authors: Tzu-ling Liu, 劉姿伶
• Other Authors: Jyh-jeng Wu
• Format: Others
• Language: en_US
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/dj6e2g

碩士 === 靜宜大學 === 企業管理研究所 === 94 === The study examines the market effect for the listing of the Forbes Best Small Companies in 2002, 2003, 2004, and 2005 of the Service, Manufacture, Electronics and others industries. This paper uses the market model to estimate the abnormal returns and cumulative abnormal returns. The results report that the abnormal returns on the event day are positive in 2002, 2003 and 2005, except in the year of 2004, which demonstrate that listing on the Forbes Best Small Companies does have the recommendation value. In another words, investors can get a few exceed returns by buying those on-list companies’ stocks on the event day for a very short-term investment. The paper also assumes that no matter which industries that the stock it belongs to would not affect the abnormal returns, and contributes an investment signal of a secondary information that is yearly available on the Forbes magazines but has not been investigated.