| Summary: | 碩士 === 國立臺北大學 === 國際企業研究所 === 106 === American government wishes to boost economy through “Tax cuts and Jobs Act” but companies use this windfall to make share repurchase. Though most investors favor that, some analysts worry future performance of these companies because share repurchase won’t result in jobs or new factories, and some scholars are skeptical why allocation of repatriations use is so uneven. This paper investigates wealth effect of TCJA and announcement of share repurchase with consideration of CSR. Then, we separate CSR into strategic CSR and agency-motivated CSR to understand their wealth effect. Our empirical results found investors may worry that better CSP companies may use the tax benefit of TCJA to make over investment in CSR campaigns and thus harm the shareholder wealth. On the other hand, investors don’t have this doubt on worse CSP companies, because it seems those companies focus on shareholder wealth more. Even if they invest in CSR activities, the amounts won’t easily exceed the optimal level of investors and it also can improve the goodwill of companies. We also found that better CSP companies announcing share repurchase can relieve the worry of over investment in CSR campaigns by investors. However, the classification of strategic CSR and agency-motivated CSR are not significant in our empirical data.
|
|---|
