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THESIS ABSTRACT
GRADUATE INSTITUTE OF ACCOUNTING
NATIONAL TAIWAN UNIVERSITY
TITLE ： Fundamental Analysis And Stock Prices
NAME ： Shih-Chang Chen
ADVISOR ： Shu Yeh, Ph.D.
Month/Year ： June, 1998
Investment analysts frequently use a set of financial variables to predict
security prices and estimate the value of corporations. We want to research
which financial variable would offer analysts useful
information. Our findings
also may help general investors to make accurate investment decisions.
The research period is from 1987 to 1996. We select 9
financial variables which
are used in the researches presented by Lev and
Thiagarajan(1993) ,and Abarbanell
and Bushee(1997).Our purpose is to investigate the
information content of these
financial variables, and whether investors would use it to
estimate securities
prices. We regress CAR, the cumulative abnormal return, on a set of financial
variables and test the estimated parameters by Wilcoxon Signed-ranks Test to
investigate the final results.
Our findings are that three of those financial variables have information
content. Among the three variables, inventory and gross
margin can offer investors
useful information to estimate security prices and get
satisfied returns. As to
the other variable, capital expenditure, it has unexpected
explanations to our
hypothesis and reserves to be investigated in the future.
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