Post-crisis Financial Policy and Sector Index Performance:An Event Study of Financial MOU and Luxury Tax

• Main Authors: Cheng, Ping-jui, 鄭秉睿
• Other Authors: Chen-Jui Haung
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/77260955014868806023

碩士 === 東海大學 === 財務金融學系碩士在職專班 === 100 === This research adopts the event study methodology to appraise two financial policies implemeted after the financial crisis in 2008 in Taiwan. The first, the Cross-strait Financial MOU, is examined over an extended period that ends in the month where the first semi-annual financial report for local banks is available as of their operation on the mainland. The second, the Luxury Tax, is analyzed from its first announcement to the effective month. The empirical investigation aims to understand how the two policies affect the performance of relevant sector indices in Taiwna’s stock market. Major findings are summarized as follows. The Financial MOU exerts a positive impact on financials in the short term. Across the 23 selected events over the sample period, there seems no significant difference as regards the resultant abnormal return (AR) and cumulative abnornal return (CAR) for financials and for banks. As to the Luxury Tax, shares of listed construction firms are most sensitive to the 12 selected events, followed by shares of listed asset-based firms and by those of financials and banks. Overall, the short-term effect of the two financial policies on sector index performance is supported.