The Impacts of Food Safety Events on Food-Related Stocks－Evidence from Taiwan

• Main Authors: Huang, Wan-Jung, 黃琬容
• Other Authors: Wang, George Y
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/b796yu

碩士 === 國立高雄應用科技大學 === 國際企業系碩士在職專班 === 102 === This research uses by event study whether the situations of certification of food safety incidents exert the effect on the stock market price in Taiwan. Samples of this research are 10 companies for the incident of plasticizer and emulsifier, 23 companies for the incident of poisonous starch, and 8 companies for the incident of Tatung’s adulterated oil. Altogether, there are 41 samples and 120 trading days as observations. We analyzed the stock market of food, by using the event study to examine the hypothesis of efficient market for the food safety incidents. The data includes abnormal return (AR), cumulative abnormal return (CAR), abnormal volume (AV), cumulative abnormal volume (CAV). We also used the the factor of financial report, such as the size of company, EPS and debt to total assets ratio to exaime their impct on the stock price and transaction. The results suggested that the food safety incidents have the abnormal return to the stock market in Taiwan and don’t conform to the hypothesis of semi-strong form efficient market. Then, the bad news of food safety incidents don’t have a significantly negative effect on the transaction of company. Finally, the factor of financial ratio in individual company indeed causes the abnormal return.