Volume 14, Number 2, December 2024
| Emerging Challenges in the Lighting Technology Industry: Analyzing Market Trends and Product Innovation
|
Shih-Chung Lee 1, Kuang-Hsun Shih 2, Yi-Hsien Wang 2, Xio Jin 3
Abstract
This study used the event study method to explore the impact of Koninklijke Philips N.V.’s announcement of separating its healthcare and lighting businesses on the abnormal returns and cumulative abnormal returns of related enterprises in Taiwan’s lighting industry. The results of this study indicate that abnormal returns and cumulative abnormal returns for these enterprises exhibited positive trends before Philips announced the business separation. This finding may be attributed to the market expectation that Philips’ business restructuring could generate additional business and collaboration opportunities for lighting enterprises in Taiwan. However, after the announcement, the abnormal returns and cumulative abnormal returns for the relevant enterprises in Taiwan’s lighting industry declined sharply and even turned negative. This shift may reflect market concerns about reduced collaboration opportunities between Philips and Taiwan’s lighting enterprises, as well as speculation that market competition could become increasingly uncertain. These changes highlight the doubts among market participants regarding the market structure and future outlook following Philips’ business separation.
Keywords: Royal Philips, Department Split, Event Study, Lighting Industry, Abnormal Return , Cumulative Abnormal Return
JEL Classification: G14, L11, L63
1 Master Program of Business Administration in Practicing, Chinese Culture University, Taipei, Taiwan
2 Doctorate Program in Intelligent Banking and Finance, CTBC Business School, Tainan, Taiwan.
* ( E-mail: wang12@ctbc.edu.tw)
3 Joint Research Center, Yiwise, College of Computer Science and Technology, Zhejiang University
* ( E-mail: jinxiao@yiwise.com)