| Summary: | 碩士 === 世新大學 === 財務金融學研究所(含碩專班) === 99 === The aim of this research is to examine the effect of stock repurchase, especially of bull and bear market atmosphere. In 2008, Taiwan stock market fell sharply, so the implementation of Taiwan's listed companies number of stock repurchase hit a record high.
How is the effect of declaring stock repurchase? By contrast, in 2009, there was a sharp rise in Taiwan stocks, How is the effect of the implementation of stock repurchase? We also compared abnormal return of the implementation of treasury stock in 2008 and 2009. The research data included listed companies which have the implementation of the stock repurchase in 2008 and 2009; a total of 54 listed companies, 125 stock repurchase samples to event study method for study of its treasury stock benefits. According to the empirical
results, the effect of treasury stock in 2008 is not as expected; only stock repurchase declared after the five events on a positive abnormal return, and the sample of stock repurchase during the period of two months, the cumulative average abnormal return is negative. By contrastm, the effects of treasury stock implementation in 2009 is unusually good, and having very good positive cumulative average abnormal returns, indicating that
treasury stock effect of bull is much better than it in the bear market; while the 2008 and 2009, two years bull and bear sharp shock of the market, the effect of the treasury stock is similar to the previous literature, there is a positive cumulative abnormal returns.
To sum up, according to the reasons for treasury stock repurchase, we found that the effects of protecting the company's credit and shareholders' equity are better than those of the transfer of shares to employees under the implementation of stock repurchase.
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