The Effect of Irrational Investments on Stock Return of Shares Repurchases Announcements

• Main Authors: CHIANG,MING-TAO, 江明道
• Other Authors: CHANG,CHUN-PO
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/422ref

碩士 === 大葉大學 === 管理學院碩士在職專班 === 106 === The purpose of this paper is to examine the effect of the announcement of stock repurchases by the event study methodology to investigate on firms’ values of public listed companies in Taiwan. The sample of the study consists of public companies in Taiwan for the period from 2005 to 2016. Because of high percentage retail investors in Taiwan stock market, the irrational investment behavior will play an important role during the stock repurchases announcement. The empirical results indicate as follows: First, the cumulative abnormal returns of listed companies are negative reaction before the stock repurchases announcement. Second, we find that on average the cumulative abnormal returns are significantly positive after the stock repurchases announcement. Finally, the variance rate and the stock turnover have positive effect to the stock repurchases announcement, but the prior returns have negative effect to the stock repurchases announcement.