The Effects of Credit Rating and Financial Indices on Reducing Capital and Treasury Stock Policies

• Main Authors: Shu-Hua Chen, 陳淑華
• Other Authors: Po-Chin Wu
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/85615480128834227638

碩士 === 中原大學 === 國際貿易研究所 === 93 === abstract The purpose of this study is to develop a Logit regression model for predicting effects of credit rating and financial indices on reducing capital and treasury stock policies. The sample was divided into three parts: “26 companies which reduce their capital and 26 companies which does not reduce their capital. ", "26 companies which buy back their stock and 26 buy back their stock." and "26 companies which reduce their capital and 26 companies does not buy back their stock". The explanatory variables of the model include "profitability index (return on assets, return on equity)", "debt ability index (current ratio, liability ratio, times interest earned), "productivity index (total assets turnover, receivable turnover), "capital structure (liability ratio, working capital). The major findings of the result of the empirical examination are as follows: 1. The explanatory of ratio of equity and credit rating have more significant effects for the past half, one, one and half, two years respectively, and debt ratio and credit rating have more significant effects for the past three years in 26 companies which reduce their capital and 26 companies which does not reduce their capital. 2.The explanatory of ratio of equity and credit rating have more significant effects for the past half, one, one and half, three years, but the explanatory of liability ratio and credit rating have more significant effects in 26 companies which reduce their capital and 26 companies which buy back their stock.