Ownership Structure and Open Market Stock Repurchase Announcements: Evidence from Taiwan

• Main Authors: Shih-Chien Nien, 粘世杰
• Other Authors: Emma Hsu
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/27240423628156019086

碩士 === 世新大學 === 財務金融學研究所(含碩專班) === 97 === This study examines the impact of ownership structure on the price reaction to the announcement of a stock repurchase program from 2000 to 2004 in Taiwan. We find that the higher short-term and long-term abnormal performance following repurchase announcements are observed in value, small, and low foreign institutional holding firms result from relatively higher undervaluation signals. Moreover, firms with smaller agency problems which have higher directors’ holding, lower cash-flow-to-voting ratio, smaller board or CEO duality generate higher positive long-term performance. Finally, the analysis of time-series regression reveals that, in general, the market reaction to the announcement of a repurchase program is positively correlated with the presence of foreign institutional ownership, the extent of the directors’ holding, and the presence of CEO duality, while negatively correlated to the board size of firms. In addition, consistent with the previous stock repurchase literature that small firms and value firms have stronger market announcement effect.