The Impact of Investor-Management Disagreement about Investment Projects on Share Repurchases

• Main Authors: Jia-rong Yang, 楊佳蓉
• Other Authors: Horace Chueh
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/95375909567608419996

碩士 === 國立高雄第一科技大學 === 金融系碩士班金融組 === 104 === Huang and Thakor (2013) propose a new theoretical explanation for stock repurchases. They assert that a firm is more likely to buy back shares when the level of investor-management agreement is lower. This study explores the effect of investor-management disagreement about investment projects on stock repurchase in Taiwan. Abnormal return subsequent to firm’s announcement of investment projects is employed to measure the degree of investor-management disagreement. The result shows a positive relationship between measures of investor-management disagreement and stock repurchases. The evidence is consistent with firms strategically using repurchases to improve alignment between management and shareholders. However, this phenomenon does not exist during the global financial crisis period.