| Summary: | 碩士 === 淡江大學 === 國際企業學系碩士班 === 99 === By the relevant literatures, earnings per share (EPS) act as the significant variable of return on investment in the Taiwan stock market. In this research, we utilize financial reporting data of the EPS from TSE and OTC corporations, to construct two different models of turnaround’s portfolios: deficit transform to surplus vs. huge losses transform to small losses. Moreover, we will evaluate the performance of two portfolios and compare the two portfolios with the domestic open-end mutual funds and the market. In the end, we try to provide a valuable investment strategy to investors. The main empirical finding as below：
1. Generalized investment portfolios
(1)Relative Performance
After comparing with the return of return of the market and open-end mutual funds, we validate the performance of deficit transform to surplus portfolio is better than huge losses transform to small losses portfolios.
(2)Absolute performance
By comparing with the market and open-end mutual funds, we also discover the performance of deficit transform to surplus portfolio is the best.
2. Fundization portfolio
(1)Relative Performance
After summarize the number of fluidization portfolio’s performance which ranking in the top 20%. The deficit transform to surplus portfolio is a nice choice.
(2)Absolute performance
By comparing rate-of-return of the two fundization portfolio, both two portfolios present very good performance.
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