The Impact of Typhoons on Stock Returns – Evidence from Taiwan Industries

• Main Authors: Yen-Ling Chen, 陳彥霖
• Other Authors: 梁婉麗
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/93062399905108195612

碩士 === 元智大學 === 商學碩士班(財務金融學程) === 100 === Our study would like to investigate the impact of typhoon’s characteristics and the impact of industrial characteristics on the market industry. Regarding the former influence, we further divide the impacts of typhoons into direct and indirect effects. Our sample includes 256 typhoons from 1971 to 2010 and all the listed companies in each year. (1) the days during typhoon period; (2) two days before typhoon period; (3) two days after typhoon period; (4) including all three periods mentioned. We find in our study that not all industries in the market have a negative effect towards typhoons. Some positive effects may be due to the fact that the industry can benefit from other’s loss. Our results show that typhoon intensity, precipitation, the agricultural disaster brought by the typhoon is a major effect to the industries market return. Our empirical results show that typhoons have significant impact on the cement, information service and construction industries. The number of houses collapsed, declaring day off and number of days off have the positive impact to the cement industry’s abnormal return. The typhoon disaster such as electric power loss results in the negative impact on the information service industry. In addition, the typhoon disaster such as the damage of railway or highway also results in a negative impact to the construction industry during the typhoon period.