| Summary: | 碩士 === 國立清華大學 === 計量財務金融學系 === 100 === Following a financial crisis, a lots of companies face M&;A problems before economic recovery, one of the most serious M&;A problems is hostile takeover. When face with the takeover, some companies choose to take a deterrent action. Stock repurchase is one of the methods to deter hostile takeover.
This research discusses the factors that affect stock repurchase. We use the ex-ante takeover probability as a latent variable and examine whether the factor affects the decision behavior of stock repurchases. We use Probit model, Tobit model and Censored Quantile Regression model as testing methods. The purpose of this research is to make empricial results to explain the past hypotheses of stock repurchase.
We found out in this research that when we use the CQR model for empirical research, different choices of quantiles may affect not noly the coefficient, but affect the significance level as well. Therefore, the choice of quantiles is crucial when we use the CQR model.
Our research also found that potential takeover crises will effect domestic corporations’ policies regarding stock repurchase. It is a same conclusion with Billett and Xue (2007) in USA. Furthermore, we also found that the companies buyback stocks for the personal benefits and qualities of corporation mangers. In addition, the resulting activities of Taiwanese corporation is more significant in case of undervaluation of stock prices.
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