|
In order to control the risk of the securities market, securities regulatory agencies in many countries will adopt measures to prevent the stock market from overreacting to reduce the risk of investors' securities markets. The main object of the paper focuses on the price limits, which currently include the "circuit circuits", suspensions of trading and the price limits.
On January 23, 2015, the Financial Supervisory Commission of Taiwan, which mainly used the limit of the increase or decrease as a measure to reduce the excessive reaction of stock market prices, proposed a policy of "relaxing the daily limit of stock price increases and decreases to 10%" in order to bring the Taiwan stock market into line with international practice, which came into effect on June 1, 2015.
The content of this paper is mainly aimed at listed companies, the size of the share capital as a demarcation point to capture the listed share capital of the first 30% of the company and the listed share capital after 30% of the company's share price data. The study period is scheduled for January 1, 2015 to October 31, 2015, and analyzes the share price data before the policy is implemented (1 January to 31 May) and the post-implementation (June 1 to October 31) daily rate of return data, to test the policy of "relaxing the daily limit of stock price increases and decreases to 10%" weather greater than before or not.
In this study, the number of listed companies with equity accounted for the top 30% and the last 30% of the total number of 470 (The percentage of companies are 50%), we put together the daily return rate of these companies and then used the event research method in methodology of investment , and counted large companies (equity as the top 30%) and small companies (equity accounted for the last 30%) with no mother Wilcoxon s ranking test to did the analysis, and the results were simply significantly different at a significant 1% level.
|