Effect of environmental issues on stock market-the case of the semiconductor industry in Taiwan

The study mainly explores whether negative environmental issues have great effect on Semiconductor stocks in Taiwan. In recent years, Taiwan's environmental pollution event in the documentary "”Beyond Beauty-TAIWAN FROM ABOVE” the most well-known is Advanced Semiconductor Engineering (ASE) pollution water, thus this study examines relative stocks category via event study; to explore whether the market mechanism is to punish inappropriate industry. The event study applied in this study is based on TEJ TAIWAN DB in order to compute abnormal return and cumulative abnormal return after events occurring in the market models, thus analyzing and comparing effect of each event of Semiconductor industry. The Final results show environmental issues have a negative impact on stock prices of Semiconductor industry and causes the abnormal returns.