The Wealth Effect of Received Order: Evidence from Mobile Phone Concept Stocks

• Main Authors: Ming-Yi Hsu, 許名誼
• Other Authors: None
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/17802626116181978202

碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 102 === In this paper, using the component suppliers of mobile phone stocks from 2007 to 2013 to be the study sample that explore the stock price reaction (abnormal returns) after the Taiwanese component suppliers receive the orders from mobile phone manufacturer. In this study, there are four directions: During the order declared ,mobile phone manufacturers, components suppliers and the company characteristics. It will divide mobile phone manufacturers and components suppliers into eight categories and 5 categories. In this paper, the event date is the news declared components suppliers receive orders for the event day, we uses event study methodology to investigate the order effect for components suppliers stock price reaction (abnormal returns), and examine the impact of corporate characteristics on the order effect. The empirical results show that components suppliers received the order from mobile phone manufacturers, there are abnormal returns positively. In terms of mobile phone manufacturers, components suppliers that will have higher abnormal returns than others receive SONY''s, Nokia''s, Motorola''s orders, while in components suppliers for the functional components suppliers, abnormal returns are also higher. In the firm characteristic''s regression analysis , If the components suppliers size are large (small) ,research and development expenses are high (low)and their free cash flow is high (low) therefore the firm value will be low (high). When the components firm size are small (large), which have a high (low) debt ratio that will make the firm value increase (decrease). No matter the size of the components suppliers, as long as the chance of investment opportunities get higher then the abnormal returns and firm value company will improve. In the sum, the components suppliers which are the functional suppliers of Taiwanese mobile phone that received the orders from these mobile phone manufacturers: SONY, Nokia, Motorola, they will get higher abnormal returns and will increase the firm value.