|
The relationship between the Taiwan government and the Chinese government has long been a thorny issue of international concern. There is an inseparable relationship and dependence between the two sides in terms of culture, diplomacy, tourism, and economy. Therefore, the cross-strait situation and the International policies have a great impact on various industries in Taiwan. Before Pelosi, Speaker of the U.S. House of Representatives, officially visits Taiwan on August 3, 2022, there have been rumors that Pelosi is about to visit Taiwan because the Chinese government is dissatisfied with Pelosi's upcoming visit. This move by Taiwan has sent common planes into Taiwan’s air defense identification zone, conducted military demonstrations in the sea and airspace around Taiwan, and made remarks to the world to provoke the United States and suppress Taiwan, which made all parties speculate that a war will be triggered at any time. Taking the turbulent and extremely severe situation in cross-strait relations as an example, the purpose of this research is to explore the impact of the US House of Representatives Speaker Nancy Pelosi's visit to Taiwan on listed companies in Taiwan. The research mainly focuses on the semiconductor, food and tourism industries. This study adopts the event study method and analyzes the systematic data of Taiwan Economic Journal Co., Ltd (TEJ) to demonstrate the abnormal remuneration of the sampling companies for the US House of Representatives Speaker Nancy Pelosi’s visit to Taiwan. The study found that after Pelosi, Speaker of the U.S. House of Representatives, visits Taiwan on August 3, 2022, the stock prices of concept stocks in Taiwan's semiconductor, food and tourism industries will bring negative returns. The findings of this study can provide Taiwanese companies and investors with important reference information for planning future business strategies, expanding overseas companies, and evaluating new investment targets.
|