A Study on the Announcement of Treasury Stock Share Repurchase and Actual Repurchases in Taiwan

• Main Authors: Lin, Tzung-Hsien, 林宗賢
• Other Authors: Lee, Liang-Chien
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/23389715871490259513

碩士 === 義守大學 === 財務金融學系 === 101 === Taiwan formally agreed the treasury stock system in 2000, it is expected that can stop the irrational stock drop and as a tool to support the stock market with a legal and reasonable method. According to the past research indicated that repurchasing treasury stocks exist the positive abnormal return( Asquith & Mullis, 1986; yang Lee, 2006; sung-lin Han, 2010), not only took signal hypothesis as a main explanation, but also convey the information of stock price being underestimated by the declaration of repurchasing treasury stocks, and achieve the effect of raising the stock price, therefore investors regard it as good news. However, for example the prime leader of electronic industry, HTC, declared treasury stocks repurchase in July 2011, but the stock price plummeted instead of raised, stock price had dropped from one thousand to two hundred, and even execute to buy treasury stock by leaning, but afterward the stock price still did not reach the expectation, in order to avoid investors have a wrong decision on making investments decisions , this study divide the time of executing treasury stocks into two parts, one is “declaration of treasury stocks”, “declaration of executive result” is another; Investigate the information content of insiders' shareholdings changes in treasury stocks, the end of share repurchase, market investors on the declaration of treasury stocks of the company declared emphasis. This article has several conclusions: 1.It has significantly positive influences on stock prices both to the listed and the OTC firms after the treasury stocks announcements, and has a short-term continuing; 2.The listed firms Insiders' shareholdings rate of change has significantly negatively associated on stock prices, but it is not significant of OTC firms. This result is contrary to the hypothesis of this study, the possible reason is the insiders' increase shareholdings, easy to use in the hands of chips to elevate the price, the stock is still overvalued suspects; 3.It has significantly negatively associated on stock prices both to the listed and the OTC firms after the actual repurchase announcements , As time goes by , Actual repurchase rate are negatively associated with abnormal returns.