A Study on Abnormal Return via Price-recovery after Ex-Dividend Days in Taiwan Stock Market

In this study, the stock data of Taiwanese electronics industry with more than 5% of Cumulative abnormal return was collected from 2001 to 2015 as our study targets. Using the event study to test that if these stocks have positive Cumulative abnormal return on next year after ex-dividend days. Our empirical results show that companies which have a stable dividend policy are better than companies which do not have a stable dividend policy. Stocks which have good abnormal return via price-recovery after ex-dividend days on this year, they will have excess returns on next year.[[abstract]]In this study, the stock data of Taiwanese electronics industry with more than 5% of Cumulative abnormal return was collected from 2001 to 2015 as our study targets. Using the event study to test that if these stocks have positive Cumulative abnormal return on next year after ex-dividend days. Our empirical results show that companies which have a stable dividend policy are better than companies which do not have a stable dividend policy. Stocks which have good abnormal return via price-recovery after ex-dividend days on this year, they will have excess returns on next year