| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 99 === As stock is one of the most important investment vehicles, every investor hopes to attain the abnormal returns by buying the stock of high growth or good returns. The well-known fund manager, Peter Lynch, accomplished an inconceivable achievement that his mutual fund had grown by 700 times in 13 years. His stock picking strategy was to find the “neglected-firm” to which stock analysts or securities traders would not pay attention. Some of prior studies on the “Neglected-Firm Effect” reveal that the lesser-known firms tend to generate abnormally high returns on their stocks.
Considering the attributes of warrant, this study focuses on the already qualified but unissued warrants as a neglected signal to examine whether or not there is neglected-firm effect in Taiwan stock market. The empirical results show that the qualified but unissued warrants perform better than both the issued warrants and Taiwan Stock Exchange Stock Index on one- or two-years returns, but not on the three-year ones. In general, there is neglected-firm effect in Taiwan stock market.
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