dc.description.abstract | Taiwan’s manufacturing industry plays an important role domestically and abroad, ranking among the top ten in the global competitiveness of manufacturing industry. In 2017, Taiwan ranked NO.1 in the world in terms of five products, including foundry, IC packaging, green algae, high-end bicycles and functional fabrics. In domestic, the number of manufacturing companies and the total market value of stocks occupancy more than 70% of all listed companies. This shows the importance of manufacturing to domestic and foreign economies. This study selects Taiwan manufacturing listed companies and makes an empirical analysis of 11 financial indicators and stock prices in the financial statements. This study wants to clarify whether the correlation between financial performance and stock price has a significant positive and negative relationship with the stock price, so that it can provide investors with the basis of stock price expectations and stock selection strategies. Data sources for the Taiwan Economics Journal database (TEJ), the use of 85 domestic listed manufacturing companies’ financial reports and stock price information, the study period for 1991 to 2018.
In this study, the samples are classified according to the industry and conduct Panel Data empirical analysis for 15 individual industries and all industries.The empirical results are as follows:Financial indicators such as “Earnings Per Share”, “Return On Equity” and “Return On Total Assets” have a positive impact on the stock prices of individual industries and industries as a whole. Based on this, investors can use the portfolio of these three financial indicators as the basis for stock selection decisions, but it is suggested that investors should not use financial indicators such as “Debt/Equity”, ” Current Ratio”,“Inventory Turnover”, “Inventory Turnover”,“Total Asset Turnover”, “Receivables Turnover” and “Revenue Growth Rate” as their main investment tools, and should carefully observe that they have a positive impact on the company’s profits, and use them as a reference basis for supporting investment decisions.
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