| Summary: | 碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 105 === This study mainly discusses the impact of financing constraints on corporate stock repurchases. We define financing constraints as when “a firm is short of funds and cannot successfully raise fund from external financing.” Financing constraints are partially due to asymmetric information in financial markets. For those firms that lack assets for collateral may face the liquidity shortage problem. Therefore, in order to obtain funds more easily, earnings management could be an important and necessary policy for these firms to select. In recent years, stock repurchases are often used as a tool to increase earnings per share and it has become an important method in earnings management. However, for the studies related to stock repurchases, only few papers discuss the relationship between financing constraints and corporate stock repurchases. Thus, this study examines the issue that how financing constraints can influence the stock repurchases. Meantime, we use dividend payout ratios and firm size to measure financing constraints and examine the aforementioned issue. The empirical results conclude that financially constrained firms are less likely to use corporate stocks repurchase.
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