The Determinants of Treasury Stock Purchased by Parent or Subsidiary: Accounting-related Information Asymmetry

• Main Authors: Jin-Chuan Lin, 林晉全
• Other Authors: 金成隆
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/66297924481030749172

碩士 === 國立中正大學 === 會計學研究所 === 91 === During the period over 2000/6-2001/11, in which stock market is extremely stagnant, the Securities and Exchange Act allows stocks listed in Taiwan Stock Exchange (hereafter TSE) and Over-the-Counter (OTC) to be repurchased by issuers or their subsidiaries. We explore the association of firms’ intangibles assets or level of innovation with the likelihood of stock repurchase during this period. We also examine whether the likelihood of repurchase by issuers or their subsidiaries vary stock issuers’ intangibles assets or level of innovation. Consistently, we document that firms with more intangibles assets or innovation are less likely to repurchase, as opposed to the findings by Barth et al. (2002), suggesting that the association of stock repurchase with intangibles assets varies with the growth or stagnancy of market stock. We also find that stock repurchases are more likely to be conducted by stock issues for firms with more intangibles assets or larger level of innovation than by their subsidiaries.