| Summary: | 碩士 === 國立雲林科技大學 === 會計系 === 106 === This study hypothesizes and tests whether the family-controlled firms are actively making share repurchases decisions in order to maintain a reasonable share price for the company. Then, testing whether the decision to declare the share repurchases has significant change when family-controlled firms with high degree of control divergence. This research is based on the listing and OTC companies from 2001 to 2016, and uses Logistic regression analysis to test the empirical model. Due to the fact that the family business in Taiwan usually has a higher degree of control divergence, the traditional agency problem is minor, therefore, it is less likely to buy stocks back as a alternative for dividend payment. And if the family-controlled firms emphasize the long-term interest and sustainable development, this study believes that family-controlled firms will not actively adopt share repurchases decisions. However, if there is a high degree of control deviation in the family-controlled firms, it will increase the incentive to announce share repurchases policies. The empirical results, as conjectured, show that family-controlled firms have a significant negative relationship with share repurchases announcement, compared with non-family-controlled firms, family-controlled firms are less likely to make decisions about buying stocks. But, compared to family-controlled firms with low degree of control divergence, family-controlled firms with high degree of control divergence are obviously willing to declare the share repurchases, which means that it is more likely to engage in share repurchases decisions. This study implements several diagnostic checks and demonstrates the results are robust to various specifications.
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