A Reexamination of Market Reaction to U.S. Bank Holding Company Share Repurchase Announcements
碩士 === 國立臺灣大學 === 會計學研究所 === 96 === This paper examines the short-run market reaction to the U.S. bank holding company share repurchase announcements by using the event study methodology and conducts further regression analysis. In previous literatures, there are several motives which may affect the...
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ndltd-TW-096NTU053850512015-11-25T04:04:25Z http://ndltd.ncl.edu.tw/handle/18190970941863382472 A Reexamination of Market Reaction to U.S. Bank Holding Company Share Repurchase Announcements 美國金融控股公司公開市場宣告買回庫藏股股價反應之再探討 Mei-Ying Lee 李美瑩 碩士 國立臺灣大學 會計學研究所 96 This paper examines the short-run market reaction to the U.S. bank holding company share repurchase announcements by using the event study methodology and conducts further regression analysis. In previous literatures, there are several motives which may affect the repurchase announcement: to substitute dividends; to signal the undervaluation of the bank’s stock; to deter the takeover threat; to adjust capital structures and to payout excess free cash flows. This study further analyzes three new hypotheses: the business cycle, the accounting loan default variables and loan composition. From the empirical result, we find that the announcement period returns are negatively related to the prior period returns, size and market-to-book ratio, but are positively related to first tier and total capital ratios. Taken together, the empirical result support many of our hypotheses and it highly supports the undervaluation signaling effect. However, it does not support the free cash flow hypothesis and takeover deterrence hypothesis. Our sample includes repurchase announcements between 1994 and 2006. Chi-Chun Liu 劉啟群 2008 學位論文 ; thesis 72 en_US |
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碩士 === 國立臺灣大學 === 會計學研究所 === 96 === This paper examines the short-run market reaction to the U.S. bank holding company share repurchase announcements by using the event study methodology and conducts further regression analysis. In previous literatures, there are several motives which may affect the repurchase announcement: to substitute dividends; to signal the undervaluation of the bank’s stock; to deter the takeover threat; to adjust capital structures and to payout excess free cash flows. This study further analyzes three new hypotheses: the business cycle, the accounting loan default variables and loan composition. From the empirical result, we find that the announcement period returns are negatively related to the prior period returns, size and market-to-book ratio, but are positively related to first tier and total capital ratios. Taken together, the empirical result support many of our hypotheses and it highly supports the undervaluation signaling effect. However, it does not support the free cash flow hypothesis and takeover deterrence hypothesis. Our sample includes repurchase announcements between 1994 and 2006.
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author2 |
Chi-Chun Liu |
author_facet |
Chi-Chun Liu Mei-Ying Lee 李美瑩 |
author |
Mei-Ying Lee 李美瑩 |
spellingShingle |
Mei-Ying Lee 李美瑩 A Reexamination of Market Reaction to U.S. Bank Holding Company Share Repurchase Announcements |
author_sort |
Mei-Ying Lee |
title |
A Reexamination of Market Reaction to U.S. Bank Holding Company Share Repurchase Announcements |
title_short |
A Reexamination of Market Reaction to U.S. Bank Holding Company Share Repurchase Announcements |
title_full |
A Reexamination of Market Reaction to U.S. Bank Holding Company Share Repurchase Announcements |
title_fullStr |
A Reexamination of Market Reaction to U.S. Bank Holding Company Share Repurchase Announcements |
title_full_unstemmed |
A Reexamination of Market Reaction to U.S. Bank Holding Company Share Repurchase Announcements |
title_sort |
reexamination of market reaction to u.s. bank holding company share repurchase announcements |
publishDate |
2008 |
url |
http://ndltd.ncl.edu.tw/handle/18190970941863382472 |
work_keys_str_mv |
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