Empirical Study of stock repurchase
碩士 === 長庚大學 === 企業管理研究所 === 96 === Using event study methodology examines the market reaction to the announcements of repurchase and retirement for Taiwan stock exchange(TSEC) listed firms over the period between August 2000 and December 2007. The results show that TSEC-listed firms experience signi...
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| Format: | Others |
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2008
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| Online Access: | http://ndltd.ncl.edu.tw/handle/ju8cap |
| Summary: | 碩士 === 長庚大學 === 企業管理研究所 === 96 === Using event study methodology examines the market reaction to the announcements of repurchase and retirement for Taiwan stock exchange(TSEC) listed firms over the period between August 2000 and December 2007.
The results show that TSEC-listed firms experience significant abnormal returns from the repurchase announcement suggesting investors react positively to the singal the firms send through the repurchase announcements.Furthermore, the market reacts more favorably to the announcements by firms that have high book-to-market ratio and price under face value greater than one.
In contrast, the market reaction to stock retirement announcements is not significant differential from zero. There is no difference in the reaction between firms in different industries. There is also no difference in the reaction between firms with different book-to-market ratio and price under(above) face value.
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