The Study of Stock Repurchase Annoncement Effect and Execution Rate － Eviendence from the Banking Industry

• Main Authors: Der-Wang Lee, 李德旺
• Other Authors: Chao-Shi Wang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/uq55dd

碩士 === 國立臺中科技大學 === 企業管理系事業經營碩士班 === 101 === Bank is a legal entity of capital combination organized and registered in accordance with banking law and regulated by company. It is a credit intermediary agency belonging to the franchising industry but differing from a limited company set up against company law. The financial structure of the banking industry differs from other industries. The financial industry is seldom included in plenty of studies of stock repurchase. This study takes stocks-published (over-the-counter) banks as objects. The assessment test items of operational performance of the banking industry are taken as the variables of study in order to check the relationship with the actual execution rate upon stock repurchase. Any abnormal return existing in the stock price is checked upon stock repurchase announced by the banking industry in order to understand the announcement effect of stock repurchase. The current law regulates the stock repurchase must be completed within two months from the announcement date. However, the execution rate of stock repurchase is not regulated strictly. This study also tries to compare if the level of execution rate will influence the announcement effect. The data source of this study is based on Taiwan Economic Journal Database and the sampling period was from August 9, 2000 to June 30, 2012. For the banks that first handle the stock repurchase, the abnormal return is measured based on the market model of event study methods and capital asset pricing model(CAPM). The empirical evidence of announcement effect shows, the operating capacity of the banking industry and positive abnormal return after announcement are significantly related to the execution rate of stock repurchase. The positive stock price reaction will be caused upon stock repurchase announced by the banking industry. As for the comparison of the level of execution rate, the bank with execution rate of high level upon their first announcement of stock repurchase owns a better positive effect.