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Price Reactions to the Announcement of the Cross-Strait Economic Cooperation Framework Agreement

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Chi, L. Price Reactions to the Announcement of the Cross-Strait Economic Cooperation Framework Agreement. Applied Economics Quarterly, 58(3), 213-221. https://doi.org/10.3790/aeq.58.3.213
Chi, Li-Chiu "Price Reactions to the Announcement of the Cross-Strait Economic Cooperation Framework Agreement" Applied Economics Quarterly 58.3, , 213-221. https://doi.org/10.3790/aeq.58.3.213
Chi, Li-Chiu: Price Reactions to the Announcement of the Cross-Strait Economic Cooperation Framework Agreement, in: Applied Economics Quarterly, vol. 58, iss. 3, 213-221, [online] https://doi.org/10.3790/aeq.58.3.213

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Price Reactions to the Announcement of the Cross-Strait Economic Cooperation Framework Agreement

Chi, Li-Chiu

Applied Economics Quarterly, Vol. 58 (2012), Iss. 3 : pp. 213–221

4 Citations (CrossRef)

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Department of Finance, National Formosa University, Yunlin, Taiwan.

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Abstract

This study employs event study methodology to capture the effects of the signing of the cross-strait Economic Cooperation Framework Agreement (ECFA) on the shipping and transportation business in Taiwan. The results of this study will be useful in adding to the body of literature that analyzes market response in order to identify the likely beneficiaries of the regional economic cooperation and liberalization brought about by the ECFA. This analysis ascertains that investors quickly anticipate the good news of the signing of the ECFA and fully assimilate its implications for a firm's value on a timely and unbiased basis.

JEL Classification: F13; G14