Many researches found that reversal phenomenon should be predictable from past price performance. Excess returns for prior losers in the test period are positive. For prior winners, excess returns are negative. Prior losers significantly outperform prior winners. This paper examines the reversal phenomenon on the Taiwan stock market. This paper uses a different way to account returns, and obtains estimates of risk-adjusted returns. The research period lasted from January 1981 to December 1997. Sixty issues are chosen as the sample in this study. Our findings indicate that excess returns for losers are significantly positive. We also find that the reversal phenomenon for losers still exists after the use of risk-adjusted returns.