A relation analysis on the number of sustainable years and stock prices

According to an academic research, when an enterprise runs longer, their strategies are more prone to gain support by other businesses. Leaning on the durability and the longevity, such enterprises can accumulated their credits and stabilize the business. Consequently, the span variable of the total business-running time or the variable of growth rate and the price variable of stock exhibit a negative-proportion relationship. This is the reason why we set the starting point here to analyze the variability of stock prices. This research uses data originated from the TAIEX, NIKKEI225, and S&P 500 as the observing targets. As a comparative purpose, we then analyze how the individual stock price was affected by the number of the sustainable years as its independent variable. We use realistic TAIEX weekly data obtained from Taiwan economic database which contains 786 enterprises to do this research. Analyzed data set ranges from 2000/1/1 to 2011/06/30. A total of 365565 records were used. Our result authenticates the speculation. All three countries: Taiwan, Japan, and United States all share the same phenomenon: two variables have a negative slope when plotted on the chart. It implies the longer an enterprise stays; the more stable it is. In other words, the fluctuation of stock's prices will be less significant under such circumstances. However, the fluctuation of stock's price in Taiwan is largest among thee countries, especially for those of enterprises whose age is less than 20 years.