Repurchase, Financially Constrain, and Institutional Ownership
碩士 === 元智大學 === 會計學程 === 99 === In this paper, we investigate the effect of institutional ownership’s monitory function on financially constrained firms that announce share buyback. We find that the firms which are under financially constrained condition would not buy back their share; however, th...
| Main Authors: | , |
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| Format: | Others |
| Language: | en_US |
| Published: |
2011
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| Online Access: | http://ndltd.ncl.edu.tw/handle/72941241522054631751 |
| Summary: | 碩士 === 元智大學 === 會計學程 === 99 === In this paper, we investigate the effect of institutional ownership’s monitory function on financially constrained firms that announce share buyback. We find that the firms which are under financially constrained condition would not buy back their share; however, the institutional ownership would let those firms repurchase their stock. We try to find whether institutional ownership can play a monitory role. We found they will have a positive effect in stock prices reaction and return of assets. Surprisingly, when we evaluate the possibility of bankruptcy, we discover that the institutional ownership would not have any monitory function impact on these firms; on the contrary, institutional investors will cause firms to have a hard time to borrow money from the banks and which will more likely to lead them to bankrupt.
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