The Effect of the U.S. Sovereign Rating Downgrade on Taiwan’s Stock Market-Evidences from Industry Sectors and Ownership Structures-

• Main Author: 周益晉
• Other Authors: 陳志鈞
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/90575804493402661370

碩士 === 佛光大學 === 管理學系 === 101 === Stock investment is a popular investment tool. However, the ownership structures vary greatly from type to type. The focus of this study is on the differences of industry and ownership structures between individual shares by investigating the correlation between over-one-thousand ownership (large shareholders), foreign ownership, and events such as Standard &; Poor's downgrade U.S. sovereign rating. Volatility of stock prices is influenced by many factors. This paper adopts the event study approach to explores across industries. Whether shares of over-one-thousand ownership (large shareholders) and foreign ownership give abnormal returns in the circumstances of events such as U.S. sovereign rating downgrade is the focus of this study. The results show that in financial and electronics industries shares performance vary greatly. Shares with higher foreign ownership ratio do perform better. In particular shares with high percentage of over-one-thousand ownership (large shareholders) consistently deliver abnormal stock returns irrespective of events of bad news.