A Study on the Influential Factors of Stock by Investment Trust Company Holdings

[[abstract]]This study aims to discuss the relation between stock by Investment Trust Company holdings and the characteristic of stocks. The dependent variable was stock?s rate of return, market value, price-earning ratio, return of asset, return of equity and revenue growth rate. The independent variable was the Investment Trust Company Net Buy and the proportion of stock-holding of Investment Trust Company. Empirical period is from the second quarter of 2001 to the third quarter of 2003. This study focused on the electronic stocks in Taiwan Stock Market. We adopt the multi-regression analysis and three stage least square approach. The research discovers: the Investment Trust Company has obvious buying action toward stocks with high rate of return, and low price-earning ratio, it would like to hold stocks with high rate of return, high return of equity, high return of asset and high revenue growth rate