The Influence of Automobile Recall on the Stock Price of the Cross-Strait Companies
碩士 === 國立交通大學 === 管理科學系所 === 105 === When an automobile part defect has been found, the automobile company should provide a remedy at no charge, which is called “Automobile Recall”. With the government's emphasis on car recall regulations, automobile recall events have become increasingly frequ...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2017
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| Online Access: | http://ndltd.ncl.edu.tw/handle/974zst |
| Summary: | 碩士 === 國立交通大學 === 管理科學系所 === 105 === When an automobile part defect has been found, the automobile company should provide a remedy at no charge, which is called “Automobile Recall”. With the government's emphasis on car recall regulations, automobile recall events have become increasingly frequent. The purpose of this study is to investigate whether the stock price of automobile companies of the cross-strait regions will produce abnormal returns on the media released days and the automobile companies announced days. The study also compared the abnormal returns of automobile companies between two straits whether there is a significant difference.
In this study, we used the sample of automobile recalls in Taiwan and mainland China in the past five years to discuss the abnormal returns using the event study method. The empirical results show that the automobile companies between two straits have produced a significant negative abnormal return during the media released day and the automobile companies announced day. In addition, the abnormal return produced in the media released day is more significant than that in the automobile companies announced day. The study also used the variance analysis to compare the abnormal returns between companies of two straits, and found that abnormal return of China automobile companies is more significant than Taiwan’s during the media released day.
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