Non-financial crisis impact on the Taiwan-based listed company''s share price.

• Main Authors: Shao hsuan, 顏劭軒
• Other Authors: 洪德俊
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/22769798551420200854

碩士 === 國立中央大學 === 企業管理研究所 === 99 === Signaling theory tell us Investors based on information provided by enterprises to make investment decisions. With the release of the signal to reduce the information asymmetry between companies and investors. Enterprise release of good news, not necessarily represent the company''s future performance will be better. Enterprises have bad news, resulting in a crisis, said the company''s current performance is indeed overvalued, the company''s share price has been under repair necessary. Type of financial crisis, the loss is easily calculated, investors can be based on relevant company''s earnings report to make investment decisions adjustment; but non-financial type of crisis, the loss is not easy to measure, then investors can only rely on media reports to make investment decisions Based on efficient market theory, in the semi-strong efficient market, the company''s share price will reflect the public information that the event occurs, the market should immediately adjust to the optimal price. The DeBondt and Thaler (1985) proposed Representativeness principle that investors often tend to overreact; Vijay Singal (2004) proposed conservation, he thought that investors react slowly to new information. Andrew Lo and Craig Mackinlay (1988) also agree with the above point, the study pointed out that good news or bad news was announced, Investors are not understanding that a large number of information describing all the same thing, so Investors do response to any information, It make market share over-adjustment and slow reaction.Could media coverage result in investors'' overreaction? Could evaluation of the media make stock price changes? Which is the subject of this research to explore. This study use event study method to test the listed companies in Taiwan in the event of non-financial type of crisis, the impact of the media reports. The results showed that the more reports or more worse evaluations, generate more negative abnormal returns but also the more affected the longer the time.