The Influence of Index Revision on Corporate Competitiveness: Evidence from Taiwan Mid-Cap 100 Index

• Main Authors: CHEN, YAN-JHIH, 陳炎志
• Other Authors: HO, PO-HSIN
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/d5gkw9

碩士 === 國立臺北大學 === 企業管理學系 === 107 === Using the Taiwan Mid-Cap 100 Index as its sample, the study examined whether being added to the index increases a company’s competitive advantages and affects its competitors. The results showed that the information of the index revision was expected by the market and the stock prices of the newly added firms already showed positive cumulative abnormal returns before the announcement dates. From the perspective of competitiveness, stock turnover, capital investment, and return on assets (ROA) increased significantly compared with rivals, and market share increased insignificantly. The regression analysis showed that the more capital investment the company has, the more the company’s market share will increase. In addition, if the company is in an industry with a low level of competition, the competitive effect will be stronger. The results indicate that when a company is added to the index, the company gets more competitive advantages and gains more market shares than its rivals.