| Summary: | 碩士 === 淡江大學 === 企業管理學系碩士在職專班 === 99 === Taiwanese financial industry has been in the business environment with excessive competition and low profits. Because of adverse circumstances in Taiwanese financial market, scale of operation and growth of business performances are limited. On the other hand, Chinese booming economy in recent years resulted in the increasing size of domestic market. The business opportunities and development potential of the financial industry are seemed infinite. Chinese financial market is absolutely advantageous in comparison with Taiwanese financial market environment. Therefore, more and more Taiwanese financial companies tend to regard Chinese financial markets as priority target.
Taiwanese financial companies are trying to take part to Chinese financial market. Taiwanese stock market investors also hold a high degree of expectation. This research objects are the listed financial sectors in Taiwan. Event-study method is adopted to investigate whether the Cross-Straits financial MOU signed on November 16th 2009 would make impact on stock prices of Taiwanese listed financial sectors. This research will focus on investigation into the differences of abnormal returns between financial holding companies and non financial holding companies. And setting representative offices in China or not would cause abnormal returns for banks, securities firms and insurance companies. Through this study, we might know the attitudes of stock investors toward the issue of MOU signed by Taiwan and China.
As for the issue whether the Cross-Straits financial MOU would make impact on stock prices of Taiwanese listed financial sectors, research results are as follows:
1. MOU would impact stock prices of Taiwanese listed financial sectors. On the signing date, the significant positive abnormal returns generated. After the signing date, the significant negative abnormal returns generated.
2. MOU would make impact on stock prices of Taiwanese listed financial holding companies and non financial holding companies. On the signing date, the significant positive abnormal returns generated. On the average, abnormal returns of the financial holding companies performed better than those of non financial holding companies. After the signing date, the significant negative abnormal returns generated. On the average, abnormal returns of the financial holding companies performed worse than those of non financial holding companies.
3. On the signing date, stock prices of Taiwanese financial sectors which set representative offices in China performed better than those who did not set offices in China.
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