| Summary: | 碩士 === 國立彰化師範大學 === 會計學系 === 96 === Treasury stock system has been implemented abroad for years, but it was formally carried out in Taiwan until 2000. Therefore, this study take TSE and OTC listed company implementing treasury stock system during 2000 to 2007 in Taiwan as samples. We apply event study to explore the stock market reacts on the implementing of share repurchase, and also to investigate whether there are some differences on the stock price reacts on different purposes and different industries. The findings can be summarized as follows:
1.Before the companies announce to repurchase shares, both TSE and OTC listed company stock price revealed negative abnormal returns. After the companies implementing to repurchase shares, both TSE and OTC listed company stock price revealed positive abnormal returns, especially the first date after the event date that having the significantly positive abnormal returns.
2.The average abnormal returns of“ the purpose of maintain firm’s credit and stockholder’s equity” are higher than any other purposes.
3.Non-electronics industries implementing treasury stock system revealed higher average abnormal returns than electronics industry.
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