Comments on The Implementation of Accelerated Share Repurchases Method in Taiwan

• Main Authors: Jian-Yi Jian, 簡建益
• Other Authors: 劉啟群
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/40140608986867442039

碩士 === 國立臺灣大學 === 會計學研究所 === 96 === The primary purpose of this thesis is to introduce the emerging stock repurchase method-namely the Accelerated Share Repurchases (ASRS) – which has been quickly growing in US and make comments whether the new method can be implemented in Taiwan. In an ASRS, a company buys back its own shares of stock from investment bank at a set price and immediately recognizes a huge growth in EPS. In the same time, the company enters into a forward contract with the investment bank, if the settlement price of forward contract is higher than initial set price, the company must compensate the investment bank. The thesis will discuss the advantages and drawbacks of accelerated share repurchases method and make suggestions to protect stockholders’ right. Besides, it will also compare the differences of treasury stock system between US and Taiwan, and explain what potential hurdles will happen, resulting from the different legal regulations. Finally, the thesis makes a conclusion if the ASRS is beneficial to improve efficiency of present treasury stock system.