Comparing the Signal Effects of Share Transferring Declaration and Treasury Shares Repurchased

• Main Authors: Sung,Ting-Xuan, 宋庭萱
• Other Authors: WANG,MING-CHANG
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/62960428629789707016

碩士 === 國立中正大學 === 企業管理系研究所 === 104 === The goal of this study is to understand the signal effects of the share transferring declaration and treasury shares repurchased factors for the public companies and to use a regression method to analyze their influence on stock prices. The empirical results show that the impact on the price of share would change from negative to positive after a company publicly declares the treasury share repurchased program with the starting and ending execution dates. The higher environmental panic the investors have, the more effective the treasury share repurchased policy is. Therefore, it would always generate a positive effect on stock price to implement a treasury share repurchased program for a company. According to the Taiwan Securities and Exchange Act, all internal shareholders must declare the number of their shares to be transferred three days before trading their stocks. The empirical results also show that, using insider filing date as the starting point, the turn-off would have a significant impact on stock price on the fourth day of a 8-day observation period, which means the magnitude of the turn-off effect is bigger than that of the treasury share repurchased effect at that moment. Since a company always takes remedial measures to reduce the effect of any negative signal, hence the turn-off would not assume a significant impact on stock price from the fifth day, which means the magnitude of the turn-off effect would be reversed to less than that of the treasury share repurchased effect from the fifth day. To sum up the above, we can conclude the public companies always try to release positive signals to investors and they will take remedial measures to offset any negative signals to restore the investors’ confidence in time.