Corporate Turnaround Announcement Effect and Influencing Factors Analysis

• Main Authors: You, Yao-Ling, 游曜菱
• Other Authors: Chou, De-Wai
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/f9t627

碩士 === 國立臺灣師範大學 === 管理研究所 === 105 === In this study, we examine whether the news release of “Corporate turnaround” could cause a positive cumulative average abnormal return (CAARs), and examine determinants that influence the average cumulative abnormal return. The sample consists of 2714 Taiwan corporates that had ever experienced losses for four consecutive quarter and a successful turnaround from the second quarter of 2006 to the second quarter of 2016.The results indicates “Corporate turnaround” news release will directly influence on average cumulative abnormal returns of stock price. The relation between news release of “Corporate turnaround” and return of stock price is significantly positive. But the average cumulative abnormal returns are not large, and the announcement effect is not strong. Another purpose of this study is to identify determinants affecting the CAARs. I employ multiple regression and probit model as research methods to examine the important factors of the CAARs. The empirical results shows that the shareholders' return on equity (ROE) and dealer shareholding ratio are positively correlated with the average abnormal rate of return. We inference that the ROE is an indicator of firms performance. When investors measure the profitability of an enterprise, they refer to the rate of return on shareholders' equity, resulting in a higher average accumulated abnormal reward. In the part of dealer shareholding ratio, the literature shows that dealers tend to bargain hunt and reap profits when the stock price rise, so we also inference that dealers tend to bargain hunt in advance and reap the profits when the news of “Corporate turnaround” is announced so as to push up the CAARs.