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How to Invest in Stocks of Family Business Groups? Case Study of WALSIN Group in Taiwan

Kasarinlan: Philippine Journal of Third World Studies

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Title How to Invest in Stocks of Family Business Groups? Case Study of WALSIN Group in Taiwan
 
Creator Lan, Yu-Wei
Lin, Dan
Lin, Lu
 
Description The impact of family business groups on the industry has drawn different views. A major challenge for investors is to understand the business model of enterprises and enhance the trading performance in the financial market. Using the data of WALSIN family group, this article adopts generalized autoregressive conditional heteroscedasticity model (EGARCH) to investigate the volatility of stock prices of WALSIN family group. The overall evidence suggests that the relationship between the leverage effect after including the leading company variable and the absence of the leading company appears to be significant at the 1% level. Therefore, the leverage effect after including the leading company has a certain effect on the financial operation of the family business group. In other words, it is helpful to include the leverage effect of the leading company in the portfolio, which can stabilize the trading performance of the WALSIN family group.Furthermore, this study adopts Granger causality and program trading to test the strategy of following the leader of WALSIN family group. The net trading profit during this period is 71.03%. The results show that the technical analysis tested in this study can lead to trading profits and investors can increase their trading profits by following the leader in the family owned business.
 
Publisher SCHOLINK INC.
 
Contributor —
 
Date 2017-07-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.scholink.org/ojs/index.php/rem/article/view/1033
10.22158/rem.v2n3p105
 
Source Research in Economics and Management; Vol 2, No 3 (2017); p105
2470-4393
2470-4407
 
Language eng
 
Relation http://www.scholink.org/ojs/index.php/rem/article/view/1033/1177
 
Rights Copyright (c) 2017 Yu-Wei Lan, Dan Lin, Lu Lin
http://creativecommons.org/licenses/by/4.0