2010 International Conference
on Knowledge-Based Economy & Global Management
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufacturers
Mei-chin Chu, Jyh-Ming Chan, and Yu-Te Huang
Department of International Business
Southern Taiwan University, Tainan, Taiwan
Presenter: Mei-chin Chu
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.1 Stock prices
1. Policy approval day (2008/9/11)
Table 1. SAR and SCAR of subsidized firms during approval period
DAYS
SAR
t(SAR)
SCAR
t(SCAR)
-5
-1.45
-3.48***
-1.4
-3.48***
-4
-1.74
-3.23***
-3.19
-3.35***
-3
0.50
2.50***
-2.69
-3.30***
-2
0.02
0.03
-2.66
-1.90**
-1
0.50
0.93
-2.16
-1.30*
0
-0.39
-0.71
-2.55
-1.36*
1
0.61
0.77
-1.94
-0.95
2
-0.84
-1.52*
-2.77
-1.14
3
-0.60
-1.52*
-3.37
-1.22
4
-2.59
-4.98***
-5.96
-1.90**
5
-1.24
-4.39***
-7.20
-2.12**
* Significant level α=0.1; ** α= 0.05; ***;α=0.01
2
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.1 Stock prices
1. Policy approval day (2008/9/11)
Table 2. SAR and SCAR of industry during approval period
DAYS
SAR
t(SAR)
SCAR
t(SCAR)
-5
-0.56
-7.94***
-0.56
-7.94***
-4
-0.33
-4.30***
-0.89
-7.34***
-3
0.22
4.67***
-0.67
-5.75***
-2
-0.48
-8.39***
-1.15
-8.84***
-1
0.18
2.86***
-0.97
-6.79***
0
-0.19
-3.50***
-1.16
-7.47***
1
-0.32
-5.40***
-1.49
-8.74***
2
-0.62
-12.27***
-2.1107
-11.47***
3
-0.70
-12.02***
-2.81
-13.61***
4
-1.17
-13.15***
-3.99
-16.89***
5
-1.16
-16.54***
-5.15
-19.1***
* Significant level α=0.1; ** α= 0.05; ***;α=0.01
3
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.1 Stock prices
1. Policy approval day (2008/9/11)
Table 3. SCAR during the approval date
Subsidized Firms
Industry
Period
SCAR
t(SCAR)
SCAR
t(SCAR)
(-5,0)
-2.5455
-1.3642*
-1.1624
-7.4654***
(0,5)
-5.0434
-2.5374***
-4.1774
-19.9687***
(-1,1)
0.7328
0.7122
-0.3389
-2.916***
(-5,5)
-7.2034
-2.1238**
-5.1461
-19.1079***
* Significant level α=0.1; ** α= 0.05; ***;α=0.01
2010 International Conference on Knowledge-Based Economy & Global Management
4
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.1 Stock prices
2. Policy implementation day (2008/10/1)
Table 4. SAR/SCAR of subsidized firms during implementing period
DAYS
SAR
t(SAR)
SCAR
t(SCAR)
-5
0.2984
0.6034
0.2984
0.6034
-4
1.3261
2.7951***
1.6245
1.8124**
-3
0.5658
1.0483
2.1903
2.8422***
-2
-0.8597
-2.946***
1.3306
2.3165***
-1
-0.4192
-0.6159
0.9115
1.3386*
0
0.2159
0.3439
1.1274
1.3464*
1
0.1514
0.2323
1.2788
1.7584**
2
0.5795
1.0971
1.8583
1.8657**
3
0.0211
0.1241
1.8793
2.2719***
4
-0.2991
-0.9907
1.5802
1.5312*
5
-0.0664
-0.1271
1.5138
1.9897**
* Significant level α=0.1; ** α= 0.05; ***;α=0.01
5
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.1 Stock prices
2. Policy implementation day (2008/10/1)
Table 5. SAR/SCAR of industry during implementing period
DAYS
SAR
t(SAR)
SCAR
t(SCAR)
-5
0.6983
11.6135***
0.6983
11.6135***
-4
1.0841
16.1615***
1.7824
17.9818***
-3
0.1658
2.6628***
1.9482
14.7365***
-2
-0.6751
-11.3875***
1.2731
9.1048***
-1
-0.5762
-8.6426***
0.6969
4.4434***
0
0.7987
11.5206***
1.4956
8.2206***
1
0.244
4.1192***
1.7395
8.7211***
2
0.596
10.5773***
2.3355
10.7873***
3
0.1528
2.644***
2.4884
10.7737***
4
0.0771
1.298*
2.5654
10.6421***
5
-0.0151
-0.2868
2.5503
10.2549***
* Significant level α=0.1; ** α= 0.05; ***;α=0.01
6
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.1 Stock prices
2. Policy implementation day (2008/10/1)
Table 6. SCAR in the short run for subsidized firms and industry during implementing period
Subsidized firms
Industry
Period
SCAR
t(SCAR)
SCAR
t(SCAR)
(-5,0)
1.1274
1.3464*
1.4956
8.2206***
(0,5)
0.6023
0.6361
1.8535
11.1986***
(-1,1)
-0.0518
-0.0783
0.4665
4.3705***
(-5,5)
1.5138
1.9897**
2.5503
10.2549***
* Significant level α=0.1; ** α= 0.05; ***;α=0.01
2010 International Conference on Knowledge-Based Economy & Global Management
7
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.1 Stock prices
3. Extending research period
Graph 1. Trend of SAR and SCAR for subsidized firms during the policy period
8
2010 International Conference on Knowledge-Based Economy & Global Management
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.1 Stock prices
3. Extending research period
Table 7. SCAR of subsidized firms and industry during policy period
Subsidized firms
Industry
Period
SCAR
t(SCAR)
SCAR
t(SCAR)
(-1,1)
0.73
0.71
-0.34
-2.92***
(-5,5)
-7.20
-2.12**
-5.15
-19.11***
(-5,10)
-4.62
-1.96**
-2.35
-10.12***
(-5,30)
-5.28
-1.33*
-2.21
-4.93***
(-5,60)
1.27
0.56
-7.27
-11.70***
(-5,135)
10.26
2.22**
-0.04
-0.05
* Significant level α=0.1; ** α= 0.05; ***;α=0.01
2010 International Conference on Knowledge-Based Economy & Global Management
9
The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.2 Sales performance
Table 8. Sale Capability of Energy Labeled manaufactures
Time
Industry
TECO
SANYO
SAMPO
TATUNG
TKEC
2007 Q4
1.058
0.479
0.977
0.665
0.450
2.107
2008 Q1
0.259
0.122
0.211
0.158
0.102
0.618
2008 Q2
0.509
0.248
0.445
0.318
0.200
1.193
2008 Q3
0.784
0.384
0.696
0.451
0.298
1.727
2008 Q4
1.099*
0.511*
0.894
0.659
0.435
2.247*
2009 Q1
0.210
0.095
0.251*
0.160*
0.091
0.542
2009 Q2
0.414
0.196
0.459
0.309
0.187
1.060
2009 Q3
0.708
0.304
0.731
0.480
0.283
1.552
2010 International Conference on Knowledge-Based Economy & Global Management
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The Impacts of Saving-Energy Subsidy Policy
on The Financial Performance
for Energy Labeled Product Manufactures
4. Empirical Analysis
 4.3 Managerial perfomance
Based on the previous literature, four models were employed
to measure the managerial performance of enterprises.
Two different indicators were used to measure dependent
variables: Tobin’s q and ROA. In terms of firm’s size, both
Assets and Sales were adopted in different regression model.
2010 International Conference on Knowledge-Based Economy & Global Management
11
Table 9. Result of the Managerial Performance Regression Analysis
Dep.
var.
Indep.var.
Tobin's q
ROA
Size(Assets)
Size(Sales)
Size(Assets)
Size(Sales)
Fixed effects
Random effects
Fixed effects
Random effects
C
-5.806
(-5.81 ) ***
1.469
(5.93) ***
-82.061
(-13.22) ***
-19.137
(-13.96) ***
SIZE
0.488
(7.27) ***
-0.012
(-0.63)
5.811
(13.93) ***
1.845
(18.09) ***
LEV
-1.303
(-8.21) ***
-0.780
(-5.72) ***
-11.665
(-11.82) ***
-12.864
(-16.52) ***
ATO
0.001
(0.04)
0.012
(0.32)
3.916
(21.63) ***
1.459
(6.59) ***
SGROW
-0.0000010
(-0.78)
-0.0000014
(-1.12)
0.000002
(0.30)
-0.000002
(-0.32)
GPERIOD
-0.521
(-18.99) ***
-0.528
(-18.96) ***
-2.208
(-12.95) ***
-1.917
(-11.22) ***
GCOMP*
GPERIOD
0.276
(0.82)
0.248
(0.74)
2.103
(1.01)
1.470
(0.72)
R-sq.
0.63
0.04
0.57
0.12
Adj. R-sq.
0.59
0.04
0.52
0.12
N=8,492 (772 firms with 11 quaterly data); ( ) is value of the t-statistic. * sig. leve α=0.1, ** α= 0.05; ***α=0.01
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Table 9. Result of the Managerial Performance Regression Analysis
Note:
1.Tobin’s q=(market value of outstanding shares + debt)/total assets
2.ROA=net profit after tax/average assets
3.Size(assets) =log(assets); Size(sales)=log(sales)
4.LEV= Leverage= debt/assets
5.ATO= Asset turnover=sales/assets
6.SGrow = Sales Grow ={(sales of this quater-sales of the same quater for
previous year)/ Sales of the same quater for previous year}*100%
7.GComp= subsidized Companies GComp=1; if not=0
8.GPeriod=subsidized Period Gperiod=1；if not=0
2010 International Conference on Knowledge-Based Economy & Global Management
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