Summary: | 碩士 === 國立臺北大學 === 經濟學系 === 98 === This thesis collects a total sample of 1989 share-repurchasing announcements during the period of August 9, 2000 to September 30, 2009 from 473 listed companies in the Taiwan stock market, and use Tobit models to investigate the relationship between companies’ share repurchasing activities and their financial statuses. Moreover, using proxy variables suggested by the literature, this study tests free-cash-flow, substituting-for-cash-dividend, undervaluation, and capital-structure-adjustment hypotheses, in order to uncover the motives behind companies’ share-repurchasing activities. We also consider other financial variables, as well as test six industries and compare their results. The major findings are as follows. We discover that free-cash-flow, undervaluation, and capital-structure-adjustment hypotheses hold using the whole sample; free-cash-flow and capital-structure-adjustment hypotheses hold for the Electron industry; undervaluation and capital-structure-adjustment hypotheses sustain in the Financial and Insurance industry; the undervaluation hypothesis sustains in the Textiles industry; free-cash- flow and undervaluation hypotheses maintain in the Electric Machinery industry; the undervaluation hypothesis maintains in the Iron and Steel industry; and the undervaluation hypothesis holds in the Building Material and Construction industry. Furthermore, different financial variables show their significance in explaining motivation of companies’ share- repurchasing activities for distinct industries.
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