How to Invest in Stocks of Family Business Groups? Case Study of WALSIN Group in Taiwan

The impact of family business groups on the industry has drawn different views. A major challenge for investors is to understand the business model of enterprises and enhance the trading performance in the financial market. Using the data of WALSIN family group, this article adopts generalized autoregressive conditional heteroscedasticity model (EGARCH) to investigate the volatility of stock prices of WALSIN family group. The overall evidence suggests that the relationship between the leverage effect after including the leading company variable and the absence of the leading company appears to be significant at the 1% level. Therefore, the leverage effect after including the leading company has a certain effect on the financial operation of the family business group. In other words, it is helpful to include the leverage effect of the leading company in the portfolio, which can stabilize the trading performance of the WALSIN family group.Furthermore, this study adopts Granger causality and program trading to test the strategy of following the leader of WALSIN family group. The net trading profit during this period is 71.03%. The results show that the technical analysis tested in this study can lead to trading profits and investors can increase their trading profits by following the leader in the family owned business

Financial Liberalization, Economic Growth and Investment Strategy: Lessons from Taiwan for New Industrial Countries

To examine the impact of foreign capital inflows on Taiwan’s economy after internet bubbles of 2000, this study adopts data from the first quarter of 2001 to the second quarter 2015 to test if foreign capital inflows have positive impacts on Taiwan’s economic growth. This study also uses program trading and aims to prove that with financial liberalizations, the investment efficiency of foreign institutional investors is better than domestic institutional investors. The results from the error correction model shows that capital formation, domestic savings and foreign direct investment all have positive relationships with the real economic growth. However, the rate of financing and foreign debt and depreciation all have negative relationships with the real economic growth. The results are all statistically significant. Hence, they do not completely support the hypothesis that foreign capital inflows are beneficial for economic growth. Moreover, this study proves that the futures market in Taiwan is not strong-form market efficient. This result provides support for the hypothesis that the investment efficiency of foreign institutional investors is higher than that of domestic institutional investors. Investors can therefore raise their investment performance by following the investment strategies of foreign institutional investors.

Why are the Performances of Business Groups Different? A Case Study of Formosa Plastics Group and Far Eastern Group

This study examines the difference in performances of two business groups, Formosa Plastics Group and Far Eastern Group, under the impact of financial tsunami (2007.10.29~2017.8.10). The aim of this study is to help investors understand the operating model of business groups and use the herding effect to enhance the trading performance in financial markets. The empirical evidence shows that for the Formosa Plastics Group, the news impact curve (based on EGARCH model) including the leading company is flatter when the news impact is less than zero (that is, negative news impact) than the news impact curve excluding the leading company. In contrast, the news impact curve of the Far Eastern Group is steeper when the leading company is included. Moreover, when the leading company is included as an endogeneous variable in the model as a filter for the program trading simulation, results show that investors can profit from the Formosa Plastics Group. Therefore, business groups that include the leading company have lower risks. It is beneficial to the stability of the market trading by incorporating the leverage effect of the leading company in business groups. On the contrary, the leading company of the Far Eastern Group does not have such an effect. The absolute profits and the increment of performance are both lower than that of the Formosa Plastics Group. The results suggest that the diversification strategy of Far Eastern Group is worse than the vertical integration strategy of the Formosa Plastics Group. The implication is that investors should carefully choose the business group for investment if they are to utilize the herding effect in investment

A Maxwell-vector p-wave holographic superconductor in a particular background AdS black hole metric

We study the p-wave holographic superconductor for AdS black holes with planar event horizon topology for a particular Lovelock gravity, in which the action is characterized by a self-interacting scalar field nonminimally coupled to the gravity theory which is labeled by an integer $k$. As the Lovelock theory of gravity is the most general metric theory of gravity based on the fundamental assumptions of general relativity, it is a desirable theory to describe the higher dimensional spacetime geometry. The present work is devoted to studying the properties of the p-wave holographic superconductor by including a Maxwell field which nonminimally couples to a complex vector field in a higher dimensional background metric. In the probe limit, we find that the critical temperature decreases with the increase of the index $k$ of the background black hole metric, which shows that a larger $k$ makes it harder for the condensation to form. We also observe that the index $k$ affects the conductivity and the gap frequency of the holographic superconductors.Comment: 14 pages, 6 figure

How Investors Survive in Crony Capitalism: A Case Study of OBI Pharma Inc. in Taiwan

The development of big data research methods and the information asymmetry problems in the financial market lead to the new issue of homo sociologicus, which has become a new way of thinking and has hoped to find the cause of asset pricing problem in the market. Crony capitalism is prevalent in the emerging and developing countries. It leads to wealth inequalities. Therefore, behavioral finance theory can help individual investors make investment decisions and help stock prices to reflect their true values. This study finds that the biotechnology industry does not exist an efficient market based on two OTC biotech companies, OBI Pharma and TaiMed Biologics, for the period 2015.11.23~2016.6.7. The results show that the technical analysis tested in this study can lead to trading profits and investors can increase their trading profits based on the mean reversion characteristic of company price differences

Phosphorous Diffuser Diverged Blue Laser Diode for Indoor Lighting and Communication.

An advanced light-fidelity (Li-Fi) system based on the blue Gallium nitride (GaN) laser diode (LD) with a compact white-light phosphorous diffuser is demonstrated for fusing the indoor white-lighting and visible light communication (VLC). The phosphorous diffuser adhered blue GaN LD broadens luminescent spectrum and diverges beam spot to provide ample functionality including the completeness of Li-Fi feature and the quality of white-lighting. The phosphorous diffuser diverged white-light spot covers a radiant angle up to 120(o) with CIE coordinates of (0.34, 0.37). On the other hand, the degradation on throughput frequency response of the blue LD is mainly attributed to the self-feedback caused by the reflection from the phosphor-air interface. It represents the current state-of-the-art performance on carrying 5.2-Gbit/s orthogonal frequency-division multiplexed 16-quadrature-amplitude modulation (16-QAM OFDM) data with a bit error rate (BER) of 3.1 × 10(-3) over a 60-cm free-space link. This work aims to explore the plausibility of the phosphorous diffuser diverged blue GaN LD for future hybrid white-lighting and VLC systems