| dc.description.abstract | Abstract
Value investing and growth investing are popular approaches to choose stocks and to make investing strategy by many specialized investment institutes these years. The overseas specialized information institutes or the website (e.g. Morningstar) sort stocks its value stock or growth stock .Mutual funds can be also sorted by value type fund or growth type fund to supply the reference for investment institutes or investors.
We seldom find the above kind of related study in Taiwan, hence the thesis takes advantage of the often seen index of the investment, e.g. ratio of PE, ratio of PB, ratio of dividend granted and FCFF MODEL…etc., We refer to the study of valuable growth stock of Fama and French (1992),and follows the model of Morningstar which sorts funds or stocks to have 3-type by longitude, value, mix and growth, for all of publicly traded companies these ten years. We then sort 3-type by latitude according to company capital--large, middle and small, to form the 3*3 matrix. Every dot matrix can be calculated for its return and variation .
There is the finding that the growing stock is superior to the valuable one within the decade in Taiwan stock. It is different from the results of past literature, The reason might be due to different studying period.
Further more, this study focuses on short time for one year to track the returns of the stock in Taiwan. We note that, Taiwan stock market belongs to shallow-plate market, and the movement is active. From this point, we can still suggest that the results are somewhat identical to other literature when investment period is short or the movement of stock market is large. | en_US |