||The impact of macroeconomic variables,food safety issue and U.S. QE on Taiwanese convenience store stock price
||Department of Business Administration
food safety issue
This study examines the effects of domestic and international macroeconomic factors on the stock prices of chain convenience stores in Taiwan. The convenience store industry is labor-intensive, oriented toward the sale of daily necessities and has a high domestic demand. Based on the labor-intensive feature, this study takes minimum wage and monthly revenue as independent variables; based on the daily necessities feature, this study takes macroeconomic factors to examine whether domestic and global economics factors have effects on the domestic-demand industry. These macroeconomics variables include the discount rate of the central bank of R.O.C., real exchange rate, CPI, and oil price. The dummy variables are food scandals in Taiwan, the plasticizer event and the poisonous starch event. Food scandals have given rise to wide concern for customers because of food safety issues. In addition, three rounds of U.S. Quantitative Easing are also regarded as independent variables as well. The results suggested that monthly revenue and minimum wage had no effects on convenience store prices. As for the domestic economic factors, the real exchange rate and the poisonous starch food scandal event did not have effects on the stock prices of convenience stores. Global economics factors like the U.S. QE and oil price were not found to have an effect on the stock prices of convenience stores in Taiwan. However, the consumer price index (CPI) was found to have a positive impact on the stock prices of convenience stores in Taiwan. The discount rate and the plasticizer food scandal had negative effects on the stock prices of convenience stores in Taiwan.
Keywords: Convenience stores, Stock price, U.S. QE, Food safety issue
List of table vi
List of Figures vii
Chapter 1 Introduction 1
1.1 Research motivation and purpose 1
1.2 Taiwanese convenience chain store industry 3
1.2.1 Brief introduction of convenience store 3
1.2.2 The major 7-Eleven convenience store events 4
1.2.3 The major Family-Mart convenience store events 6
1.3 Research limitations 7
1.3.1 Reinvestment of the 7-Eleven and Family Mart 7
1.3.2 Traditional grocery and convenience stores do not go public 8
Chapter 2 Literature Review 9
2.1 Operating status of Convenience stores in Taiwan 9
2.1.1The effect of revenue on stock price 9
2.1.2The effect of minimum wage on stock price 10
2.2The effect of Taiwan’s economy on stock price 12
2.2.1The effect of discount rate on stock price 12
2.2.2The effect of the CPI on stock price 13
2.2.3The effect of food scandals on stock prices 13
2.2.4 The effect of real exchange rate on stock prices 14
2.3The effect of global economic status on stock prices 15
2.3.1The effect of oil price on stock price 15
2.3.2 The effect of the U.S. QE policy on stock prices 15
2.4 Research contributions 16
Chapter 3 Research Design 18
3.1Research process 18
3.2Research variables 19
3.2.1 Variables 19
3.2.2 Dummy variables 19
3.3 Initial regression model 20
Chapter 4 Empirical Model 22
4.1 Unit Root Test 22
4.2 Multicollinearity Test 24
4.3 Heteroskedasticity Test 26
4.4 Autocorrelation Test 27
4.5Final Regression Model 28
Chapter 5 Conclusions and Suggestions 32
5.1 Research conclusions 32
5.1.1 The effect of monthly revenue and minimum wage on stock prices 32
5.1.2 The effect of real exchange rate, the CPI , and discount rate on stock prices 32
5.1.3 The effect of the oil price, and the U.S. QE on stock prices 33
5.1.4 The effect of the food scandals on stock prices 34
5.2 Research suggestions 34
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