TABLE OF CONTENTS
CHAPTER 1 Introduction	1
CHAPTER 2 Literature Review and Hypotheses	10
2.1 Market Structure Design and Hedging Function	10
2.2 Market Conditions and Hedging Effectiveness	12
2.3 The Moderating Role of Market Reform and Market Conditions	16
CHAPTER 3 Data and Research Design	19
3.1 Research Period and Sample Selection	19
3.2 Measurement of Hedge Ratio and Hedging Effectiveness	19
3.3 Institutional Variable and Model Specification	23
3.4 Market Conditions and Model Specification	25
3.5 The Moderating Effect of Institutional Reform	26
CHAPTER 4 Empirical Results	29
4.1 Definition of Variables and Descriptive Statistics	29
4.2 Analysis of Market Reform Effects	31
4.3 Impact of Market Conditions on Hedging Effectiveness	34
4.4 Analysis of the Moderating Effect of Institutional Reform	39
CHAPTER 5 Robustness Analysis	43
CHAPTER 6 Conclusion	49
References	51

List of Tables
Table 1 Variable definitions	29
Table 2 Descriptive statistics of main variables	31
Table 3 Baseline regression results for hedging effectiveness	34
Table 4 Regression results for market conditions and hedging effectiveness	39
Table 5 Moderating effects of market conditions on hedging effectiveness	42
Table 6 Robustness of institutional reform effects	46
Table 7 Robustness of market condition effects and moderating interactions	48

List of Figures
Figure 1 Annual trading volume of Taiwan’s single stock futures	3
Figure 2 Long and short open iinterest in Taiwan’s futures market	5

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