The Impacts of Financial Performance on Stock Returns under DifferentFinancial Holding Assets

• Main Authors: YAO, PEI-SHAN, 姚佩珊
• Other Authors: 古永嘉
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/88581056693648201279

碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 101 === On July 9, 2001 The government announced "Financial Holding Company Act" as the basis for improving management capability of the financial industry. The initiation of the Financial Holding Company Law has significant impact on the financial indusdry. The purposes of this study have four objectives: (1) investigates the correlation between financial performance indicators and stock return. (2) investigates the difference of financial performance indicators and stock returns under various asset size. (3) investigates the impacts of financial performance indicators on stock returns under various asset size. (4) investigates important significant financial performance indicators on stock returns under various asset sizes. This study uses fourteen financial holding companies data ranging from the fourth quarter of 2001 to the third quarter of 2012, from Taiwan Economic Journal database (TEJ), a total of 600 observations. Eight financial performance indicators as independent variables, total assets as control variable and companies stock returns as dependent variables. The data analysis include Pearson correlation, ANOVA analysis, multiple comparison analysis (Duncan method), regression analysis and stepwise regression analysis. The results show that: (1) Stock returns, EPS and ROE stock returns, operating margin and operating expense ratio have positive correlations. (2) Stock returns showed no statistically significant difference under different sizes; however, the actual data show that the quarterly stock returns of larger size are slightly better than the small scale. (3) In larger size FHC, operating margin, pre-tax profit margin and operating expense ratio have significant positive impacts on stock returns return performance, the better. (4) For all FHC companies, after-tax return on equity ratio and operating expense ratio have significant impacts on stock returns.