Insights
In-depth research and data-driven insights on quantitative finance, factor investing, risk, and ESG from the TEJ research team.
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Fundamental Factor Research: Monthly Revenue Information – part1
The Taiwan equity market possesses a rare institutional advantage globally: under the Securities and Exchange Act, listed companies are required to announce and report their operational results for the preceding month by the 10th of each month (Exception: starting from FY2026, insurance companies and entities with insurance subsidiaries may extend their disclosure deadline to the 15th of each month). This is commonly referred to in the market as "Monthly Revenue".
Factor Strategy – Integrating Broker Consensus to Enhance Foreign Concentration Strategies – QFII Part 2
Boost your quantitative strategy with QFII concentration & broker consensus! Discover how the conc_qfii fusion strategy delivers a 30.12% annualized return in the Taiwan large-cap market.
Factor Research – Tracking Smart Money Footprints via Foreign Institutional Concentration – QFII Part 1
Track QFII ‘smart money’ footprints in Taiwan large-cap stocks! Learn how the Foreign-Institutional Trading Concentration (conc_qfii) factor predicts returns.
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Quant Research
Empirical Study on TESG Rating: The Relationship between Corporate ESG Performance and Bank Lending Decisions
This article examines how corporate ESG performance affects bank lending decisions in Taiwan. Using TEJ’s TESG Ratings, the study finds that companies with stronger ESG performance generally receive more favorable lending conditions, including lower loan spreads, larger loan amounts, longer maturities, and a lower likelihood of collateral requirements. The findings also highlight the importance of balancing ESG initiatives with financial performance, as excessively high or low ESG performance may lead to less favorable lending terms.
Industry Insights
Sustainability-Linked Bonds: A Detailed Guide to ESG Investing
As America continues to maintain a high-interest rate, the borrowing cost for companies still remains at a peak. However, compared to other bonds, bonds related to ESG enjoy a lower yield, but seldom do we see small or startup companies issue green bonds. This is because issuing green bonds requires the funds only to be used on certain ESG projects, which is normally not the primary goal for small and startup companies. Hence, a new type of bond, Sustainability-Linked Bonds, is created. In this article, we will briefly introduce the concept and principle of Sustainability-Linked Bonds.
Market Knowledge & Data Guides
ESG Bond Introduction II
The previous article mentioned the basic types of ESG bonds, and we believe you have a basic understanding of these types of bonds. Next, we will introduce specific types of ESG bonds, and briefly introduce you to a few representative countries that are currently promoting sustainable finance policies and ESG bond market development.
Market Knowledge & Data Guides
What are ESG Bonds? Understanding This Key Player in Sustainable Finance
ESG bonds are issued in the same way as regular bonds, but the difference lies in the use of the funds, which is the most important reason to differentiate ESG bonds from regular bonds.
Event & Alternative Signals
Negative Screening: Striking the Balance Between Your Beliefs and Portfolio Returns
For advocates of negative screening, the most crucial question is how to screen for good companies. Can the selected companies not only align with personal values but also meet returns?
Event & Alternative Signals
ESG Investment Portfolio (Part 2)
In the previous article, we introduced TESG’s scoring mechanism in detail and its rating ratio among popular ETFs in China. This article will teach readers how to further use the ESG rating provided by TESG, and use Python to construct a concurrent An investment portfolio with sustainable operations and financial growth potential.
Event & Alternative Signals
ESG Investment Portfolio (Part I)
In recent years, various asset management companies have launched ESG-related ETFs, such as the pioneering Fubon Corporate Governance ETF (00692), which focuses on the top 100 companies in Taiwan in terms of corporate governance, and the Cathay Sustainable High Dividend ETF (00878), which combines high dividend yields with sustainability criteria. The common thread among these ESG ETFs is their tracking of ESG indices introduced by domestic and international index providers. While each ESG ETF specializes in different areas, they all rely on ESG screening criteria, emphasizing sustainable business practices among their constituent stocks, allowing investors to invest in assets that balance environmental sustainability and robust growth potential.
Quant Research
Stocks Selection by ESG Factors
Observe the relation between employee turnover rate and stocks return Highlights Preface In recent years, there’s an investment called ESG investing, meaning when investing, the firm’s financial performance is not the only thing to be considered. Instead, its influence over environment and society and its corporate governance should be stressed as well. There are no […]