Abstract
This study examines the influence of U.S. FED’s interest rate-raising event announcements on the abnormal returns in the Taiwan stock market. The empirical results verified that, when the U.S. FED announced the interest rate decreasing, before the event announced, both the high-tech industries and traditional industries would have the opportunity to obtain significantly negative accumulated abnormal returns (CAR), after the event announced, high-tech industries still have the opportunity to obtain the significantly negative accumulated abnormal returns, while traditional industries just have the opportunity to obtain the significantly positive accumulated abnormal returns on the third day after the announcement. Whereas, when the U.S. FED announced the interest rate increasing, traditional industries have more opportunity than high-tech industries to obtain significantly positive accumulated abnormal returns. The empirical results provide references for investing decisions to the investors.
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References
Commercial Times, Fed Interest Rising Impact on Taiwan (2017). www.chinatimes.com/newspapers/20170619000028-260202. Accessed 22 July 2017
Yang, C.: High-tech Industry and Talent Innovation—Taiwan Model and Experience (2007) www.npf.org.tw/post/2/1732. Accessed 22 Dec 2017
FED: Structure of the Federal Reserve System (2017a). www.federalreserve.gov/aboutthefed/structure-federal-reserve-system.htm
FED: Purposes and Functions (2017b). www.federalreserve.gov/aboutthefed/pf.htm
Acknowledgment
This study was supported by Asia University under Grant No. 105-asia-09. We acknowledge the helpful comments and suggestions from the anonymous reviewers.
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Lin, XH. et al. (2019). The Influence of U.S. FED’s Interest Rate-Raising Event Announcements on the Abnormal Returns in the Taiwan Stock Market. In: Barolli, L., Xhafa, F., Javaid, N., Enokido, T. (eds) Innovative Mobile and Internet Services in Ubiquitous Computing. IMIS 2018. Advances in Intelligent Systems and Computing, vol 773. Springer, Cham. https://doi.org/10.1007/978-3-319-93554-6_77
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DOI: https://doi.org/10.1007/978-3-319-93554-6_77
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