The picture shows Mr. Jielin Ho, a student from the Department of Finance at Asia University, presenting his thesis on the 'Relationship between the Effects of Rights Dividends and Stock Price Momentum.

Mr. Jielin Ho, a student from the Department of Finance at Asia University, under the guidance of professors Liu Yongqin and Chen Xiangru, submitted his thesis on the 'Relationship between the Effects of Rights Dividends and Stock Price Momentum' to the '2023 New Futures Futures Academic and Practical Exchange Seminar.' Standing out among submissions from nearly 40 financial departments nationwide, he was awarded the Outstanding Paper Award and invited to present at the seminar.

The 'New Futures Futures Academic and Practical Exchange Seminar,' organized by the Taiwan Futures Exchange, has entered its 5th edition. It is a large-scale series of events in Taiwan focusing on the exchange of academic and practical knowledge in the field of futures. The themes cover areas such as 'Financial Technology,' 'Product Innovation,' 'International Trends,' and 'Regulatory Systems.' Every year, it attracts submissions and participation from financial departments of domestic universities and colleges.

Mr. Jielin Ho expressed that the adjustment of stock prices after the distribution of dividends and the ex-rights and ex-dividend dates is well-known. However, the crucial question of whether the stock prices will return to their original levels, leading to the phenomenon of 'filling of rights dividends,' or continue to rise remains a focal point for investors. This is particularly relevant in recent years, as there is a growing trend in investing in high-dividend stocks and ETFs. Therefore, he aims to delve deeper into the stock price momentum before the ex-rights and ex-dividend dates and its impact on the filling of rights dividends.


The picture shows Mr. He Jielin (on the right), a student from the Department of Finance at Asia University, receiving the 'Outstanding Paper Award.

Mr. Jielin Ho's research focuses on the period from 2012 to 2022, using Taiwan-listed companies (excluding financial stocks) as the sample. The measurement of stock price momentum includes returns over 1, 2, 3, 6 months, and the entire year. The assessment of the 'filling of rights dividends effect' comprises the returns for the first and complete filling of rights dividends, as well as the required number of days.

According to Jielin Ho's findings from regression analysis, stocks with shorter-term and stronger momentum before the ex-rights and ex-dividend dates take more days to achieve the first filling of rights dividends. This implies that the post-ex-rights and ex-dividend price recovery is slower for stocks with shorter-term and stronger momentum. However, after the recovery, they tend to exhibit higher holding period returns compared to stocks with longer and weaker momentum. The stronger the momentum before the ex-rights and ex-dividend dates, the higher the period returns for the complete filling of rights dividends. However, it takes a longer time for the complete filling of rights dividends for these stocks, and the impact of the duration of momentum calculation on returns and required days is more irregular. Additionally, the study also found that the strength of early-stage momentum and the number of months in the period have a negative impact on the probability of filling rights dividends. This explains the phenomenon where stocks with stronger momentum before the ex-rights and ex-dividend dates and a shorter period require more days to achieve the first or complete filling of rights dividends.

Mr. Jielin Ho expressed sincere gratitude to his teachers for their guidance. He extensively read various papers and received dedicated instructions on how to conduct empirical research, enabling him to complete this thesis and present it at the seminar. Additionally, Professor Liu Yongqin encouraged him to apply for the '5-year integrated program' and continue his graduate studies at Asia University after graduation.