The Impact of Major Air Crisis on Equity Prices: Evidence on The Taiwan Airways Companies
碩士 === 南華大學 === 企業管理學系管理科學碩博士班 === 103 === China Airlines and TransAsia Airways which are two well-known airline companies in Taiwan have suffered serious air crises in last decade. The air crisis not only makes passengers feel panic on flight, it also increases the risk of financial collapse due...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2015
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| Online Access: | http://ndltd.ncl.edu.tw/handle/45503324649103675460 |
| Summary: | 碩士 === 南華大學 === 企業管理學系管理科學碩博士班 === 103 === China Airlines and TransAsia Airways which are two well-known airline companies in Taiwan have suffered serious air crises in last decade. The air crisis not only makes passengers feel panic on flight, it also increases the risk of financial collapse due to the huge compensation. Therefore, it usually seriously negatively impacts to the equity price of the airline company. Using the event study method, this study aims for the purpose of examining how does it impact on the equity price? Does the equity price overreact to the air crisis event? How long does the impact will be prolonged? The empirical result can be the evidence for investigating the market efficiency of Taiwan.
Using of a sample of 11 major air crisis which not only includes Taiwan air crisis but also considers the impact of international air crisis, we find that air crisis strongly negatively impact on the stock price & the stock price corrected immediately after 1-2 days. The result provides evidence to supports Taiwan's stock market is a semi-strong efficiency market.
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