| Summary: | 碩士 === 國立成功大學 === 國際企業研究所碩博士班 === 101 === The motivation of this research is come from the news that there are more and more companies had announced that there are going to have cash capital reduction in recently. In fact, cash capital reduction and cash dividend are both returning firm’s cash to its shareholders. That is the reason why we want to compare the announcement effects of both actions in this research. In this research, we chose the companies which both had cash capital reduction announcement and increasing cash dividend announcement in the period 2009 to 2012 as our example, analyzing the stock price reaction of those companies through different event windows, to find out whether it’s has abnormal return. Comparing which way would led to much fluctuation in stock price, and which way would have more significant abnormal return.
We use event study in this research. The result shows that after company announced they would increase the cash dividend, there is significant abnormal return of its stock price. Cash capital reduction’s announcement effect is not significant, but there is significant abnormal return before 3 days of the announcement. In this research also found that revenue growth rate would influence cash dividend announcement effect. Besides, firm size would influence cash capital reduction announcement effect.
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