| Summary: | 碩士 === 國立高雄應用科技大學 === 金融資訊研究所 === 102 === In this study, the architecture of Yen,Chen&Yang(2005) was based to investigate the implementation effectiveness of stock repurchase for the implementation of treasury stock for companies with stocks listed in OTC (over-the-counter) stock market. According to data from OTC companies of electronic category in the period from Jan. 01, 2001 to Dec. 31, 2009 and through the use of event study and statistical analysis method, investigations are made to see the effect of the implementation of stock repurchase on those companies and to see if there is any abnormal stock return, meanwhile, it is also to see if different implementation frequency in the implementation of treasury stock can lead to consistent conclusion.
From the results of the empirical analysis, the following empirical results can be obtained:1 The corporate announcement of stock repurchase plan can effectively transfer the message of underestimated stock price to the market, which in turn will promote the rise of the stock price, hence, in this study, an empirical result similar to that of Yen,Chen&Yang(2005) can be obtained. Therefore, this study can indeed enhance the reliability of the previously and empirically found announcement effect. 2
In this study, the implementation effectiveness of the stock repurchase plan is observed through the implementation result of the entire sample companies, the implementation result of single repurchase plan, the implementation frequency of repurchase plan, and the actually accumulated repurchase number of stock. It was found that the empirical result basically supports the political cost hypothesis, information asymmetry hypothesis, value underestimation hypothesis and operation strategy hypothesis.
In the market response aspect, the empirical result matches the expectation. In the accumulated average abnormal return of short term(day) and longer term (month), difference can indeed be seen among different repurchase groups, in other words, the one with frequent repurchase shows the smallest abnormal return, the one with rare repurchase shows the largest abnormal return.
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