|其它题名: ||The short- and long-term performance of stock repurchases with low execution rate|
|作者: ||趙音茹;Jau, Yin-Ru|
李命志;劉洪鈞;Lee, Ming-Chih;Liu, Hung-Chun
|关键词: ||庫藏股;事件研究;執行比率;宣告效果;買進持有報酬率;Stock Repurchase;Event Study;execution rate;announcement effect;buy-and-hold returns|
|上传时间: ||2017-08-24 23:33:14 (UTC+8)|
In recent years, stock repurchase has become an important tool for companies to buoy falling stock prices. According to Article 5 of ‘Regulations Governing Share Repurchase by Exchange-Listed and OTC-Listed Companies’, a company shall register its share repurchase with the Securities and Futures Bureau, Financial Supervisory Commission after the approval of its Board, shall complete the repurchase within 2 months after the declaration date, and shall declare and announce the repurchase five days after the due date or the completion of the repurchase. The fact the current laws have yet provide clear relevant regulations on the repurchase of treasury stocks has led to a slew of companies making hollow promises to lift their stock prices under the pretext of repurchasing treasury stocks, thereby tarnishing their reputations and infringing investors’ rights.
This thesis examines the fluctuations of stock prices of TSE-listed and OTC-listed companies after their announcement of repurchase of treasury stocks from 2008 to 2015. Meanwhile, this study conducts detailed investigations into companies with lower-than-10% execution rates, and compares them with companies boasting a 100% execution rate to further discuss their long- and short-term stock performances.
The empirical results suggest that prior to their repurchase of treasury stocks, the researched companies’ stock prices would abnormally tumble, setting the scene for a short period of rebound after the stocks were bought back. Also, over the long term, the excess returns of domestic companies that repurchased treasury stocks also correlates with the returns of TAIEX, warranting the long-term effects of the announcement on the repurchase of treasury stocks. Moreover, the accumulated abnormal returns of companies with lower-than-10% execution rates are higher than that of those with 100% execution rate, which would be attributed to the former’s relatively strong announcement effects during the period.