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Why are the Performances of Business Groups Different? A Case Study of Formosa Plastics Group and Far Eastern Group
Asian Journal of Economics and Empirical Research
View Archive Info| Field | Value | |
| Title |
Why are the Performances of Business Groups Different? A Case Study of Formosa Plastics Group and Far Eastern Group
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| Creator |
Lan, Yu-Wei
Lin, Dan Lin, Lu |
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| Subject |
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Family business, EGARCH, Herd effect, Granger causality test, Symmetric trading. — |
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| Description |
This study examines the difference in performances of two business groups, Formosa Plastics Group and Far Eastern Group, under the impact of financial tsunami (2007.10.29~2017.8.10). The aim of this study is to help investors understand the operating model of business groups and use the herding effect to enhance the trading performance in financial markets. The empirical evidence shows that for the Formosa Plastics Group, the news impact curve (based on EGARCH model) including the leading company is flatter when the news impact is less than zero (that is, negative news impact) than the news impact curve excluding the leading company. In contrast, the news impact curve of the Far Eastern Group is steeper when the leading company is included. Moreover, when the leading company is included as an endogeneous variable in the model as a filter for the program trading simulation, results show that investors can profit from the Formosa Plastics Group.
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| Publisher |
Asian Online Journal Publishing Group
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| Contributor |
—
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| Date |
2017-11-16
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://www.asianonlinejournals.com/index.php/AJEER/article/view/1147
10.20448/journal.501.2017.42.106.120 |
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| Source |
Asian Journal of Economics and Empirical Research; Vol 4, No 2 (2017); 106-120
2409-2622 2518-010X |
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| Language |
eng
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| Relation |
http://www.asianonlinejournals.com/index.php/AJEER/article/view/1147/pdf
http://www.asianonlinejournals.com/index.php/AJEER/article/view/1147/remote |
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| Coverage |
0
https://scholar.google.com/citations?view_op=view_citation&hl=en&imq=&citation_for_view=3v-9kFIAAAAJ:rHJHxKgnXwkC — |
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| Rights |
Copyright (c) 2017 Asian Journal of Economics and Empirical Research
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