Do Blue Chip Stocks Blue in Taiwan?

Abstract

Recent issue of Newsweek reported that the blue chip stocks are becoming blue in the U.S. Blue chip stocks generate returns decreasing. This study intends to explore if the blue chip stocks in Taiwan also blue. We use three ways to analyze Taiwan stocks in the past 10 years. The empirical analysis shows that the larger the market value, the higher the return rate. From the empirical results, we conclude the blue chip stocks do not blue in Taiwan.