This study investigates whether new-selling influences of various generating iPhone would result in the abnormal returns on their supply chain firms in Taiwan by using the event study analysis. According to public information and reports of security analysis, we select 44 public-listed firms as the sample of iPhone’s supply chain and date of new-selling announcement as the event day. Our sample covers the periods from 2007 to 2015.
Our results show that firms of iPhone’s supply chain, on average, have significant abnormal returns on the event day. There is information spillover before event date and overreaction reverse effect event date after event date. Future, we find that abnormal returns on these supply chain firms are highly correlated to the number of cross-generating manufacture revealing their completive advantage.
