Effect of Stock Repurchases on the Takeover Returns.

• Main Authors: Chen, Ying-Ying, 陳盈穎
• Other Authors: Lin, Lin
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/14807152259754951904

碩士 === 國立暨南國際大學 === 財務金融學系 === 101 === In this paper, we investigate that whether the acquisition company raise the transaction cost or not when the target company use repurchase stock? Or the target company use repurchase stock will help them defense the acquisition company? We exam that the performance of the target company and the cost of the acquisition company by the Event Study and regression.We grab the data from DataStream and Securities Data Company (SDC) between 1990 to 2010.We have three major empirical results. First, the target company which use repurchase stock will raise premium multiple, and the higher premium multiple the acquisition company use will make the target company more willing to use repurchase stock. Second, because of undervalue stock price, the target company who use repurchase stock have　correlation with cumulative abnormal return (CAR),but they are not significant . And some goal companies who buy repurchase stock before or after announce date haven’t correlation with CAR neither. Last, the target company who use repurchase stock will have higher CAR.