Relationships Between Trading Suggestions Provided By Foreign Financial Firms And Stock Return Of Taiwanese Blue-Chip Companies

• Main Authors: Hsu, Shiang-Cheng, 頊祥程
• Other Authors: Liu, Shi-Miin
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/58532851709303846808

碩士 === 國立臺北大學 === 經濟學系 === 100 === This research tries to investigate whether stock returns for Taiwan’s well-known companies change in the same direction as foreign financial firms’ trading suggestions. The purpose is to provide investors information about which groups of foreign financial firms make the most valuable trading suggestions. The financial firms are divided into four groups: American, Japanese, Hong-Kong and European. The 31 blue-chip stocks used have the largest trading values in Taiwan’s stock market and are among the Taiwan 50. Sampling period of this study is from June 2008 to June 2011, and average returns of four trading days for individual stocks after suggestions being given by foreign financial firms are employed as the dependent variable of my multiple regressions. The results show that American financial firms (e.g., City Corp., Morgan Stanley) perform the best in terms of giving useful information on buying and selling Taiwan’s blue-chip stocks. Investors may consider using their suggestions to earn some profits or avoid losses when trading domestic blue-chip stocks.