Analysis on the pattern of investment return among industrial share listings by Taiwan’s public-listed companies ─ an assessment on the impact of Asian financial crisis spanning from Dec. 96 to Dec. 1999
Dr. Sou-Shan Wu
|Keywords:||上市公司;各產業類股;平均每股市值;平均每股盈餘;本益比;股價淨值比;股利收益率;產業類股市值占國內生產毛額值;Listed companies;share listings by industry;average market value per share;average earnings per share;price-yield ratio;share-yield ratio;dividend return rate;contribution of share listings to total gross domestic product|
The last U.S. stock market crash occurred in October 1987 had triggered major world bourses to tumble in a domino effect, a phenomenon that also quickly swept across the derivative product markers and other global securities markets, sending rippling effects that also severely crippled the listings at Taiwan Stock Exchange. Another financial crisis loomed in October of 1998 sent the TAIEX plummeting, where the weighted index had taken a free-fall from its high of 10,200 points straight down to bottom at an all-time low of 5,421 points, can this be the immediate cause of the missile threats by mainland Chinese authorities or the ripple effects of the Asian financial crisis, or a long-term effect of over-speculated stock valuations, something that has been much debated by many watchers. The study attempts to examine various types of publications in an effort to conclude factors that are likely to impact the stock markets, which can be used to examine the correlation’s among the average market value per share, average earnings per share, price-earnings ratio, share-net value ratio, dividend return rate or yield, and contribution of share listings to the gross domestic product on shares listed by public-held firms in Taiwan against the fluctuations of the weighted stock index on various types of local share listings during the particular period hit by the Asian financial woes. The study takes to a 95% reliability level in evaluating the correlation’s of the variables, including the month-end industrial average market value per share, average earnings per share, price-earnings ratio, share-net value ratio, dividend return rate and industrial share market value to GDP against the fluctuations to weighted share index on the total shares issued at each month’s end by public-listed companies. And findings derived from the multiple reversal analysis indicate that of the six major factors that impact the stock markets, share net valuation has the most onerous correlation, followed by earnings per share and market value per share, trailed by price-earnings ratio, whereas dividend return rate and share listing valuation to GDP are merely linked to four and three share listings by industry respectively. Moreover, what has been indicated also shows that the overall economy plays a key role to the impacts felt by the stock markets, hence the ratings do offer valuable reference points, yet noteworthy is that the state of dividend distribution has virtually very little impact to the stock markets.
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