| Abstract: | This research, consisting of 48 sessions, studied the stocks of listed/OTC companies in Taiwan between 2004 and 2015. A lot of researches showed that the investment performance of value stocks was superior to that of growth stocks; nevertheless, the result of some researches suggested that growth stocks surpassed value stocks in return on investment. In consequence, when studying this subject, this research also took the impacts liquidity having on return of investment of these two types of stocks into consideration, apart from making analyses of classification standard on value and growth stocks. The empirical results were as follows: first, there were no significant differences between growth stocks and value stocks in terms of market without considering liquidity, secondly, when considering liquidity, the returns of growth stocks, either with high or low liquidity, were all significantly higher than those of market; the returns of value stocks, either with high or low liquidity, were also higher than those of market, fourthly, taking liquidity into consideration, the returns of value stocks with low liquidity were significantly higher than those of growth stocks with low liquidity, and fifthly, the returns of growth stocks with high liquidity are greater than those of growth stocks with low liquidity; while there were no obvious differences between value stocks with high or low liquidity with respect to returns. |
