| dc.description.abstract | The automotive industry is commonly referred to as the locomotive of manufacturing because the manufacturing process involves many related basic industries and the extended demand for automotive components can spur the development of those manufacturing. Looking at Taiwan’s automobile sales in the past 15 years, except the sharp decrease in 2008 due to the global financial crisis and the weak economy, it had been rising slowly since 2009. According to the statistics published by the Ministry of Economic Affairs, the output value of Taiwan’s automotive industry accounts for 3-4% of the total output of the manufacturing industry. This indicates that Taiwan’s automotive industry has played an important role in the manufacturing industry.
The main purpose of this study is to find that whether the upstream and downstream revenues of the automotive industry are related. This research uses the quarterly data collected from the listed companies during the years between 2010 and 2019. The companies were classified according to the automobile industry chain specified by the Industry Value Chain Information Platform developed by the Taiwan Stock Exchange. Since the samples in this study are of time series data, the unit root test has been used to test whether each variable series is stationary or not. Then, the co-integration test has been used to confirm whether there is a co-integration relationship between the dependent and the independent variable of each regression model. In other words, a long-term stationary relationship between variables were examined to confirm whether the regression models are meaningful.
The empirical results have the following findings:
1.The revenues and profits indicators of downstream manufacturers in the automotive industry do significantly affect upstream revenues, and the previous period of downstream revenues will also significantly affect upstream revenues.
2.The current downstream stock price has a significant negative impact on the upstream stock price, and the previous period of downstream stock price has a significant positive impact on the upstream stock price, and the downstream financial performance will not significantly affect the upstream stock price.
The above results show that the upstream and downstream revenues, profits, and stock prices of the automotive industry are related. | en_US |