| Summary: | 碩士 === 國立清華大學 === 計量財務金融學系 === 104 === The dissertation discusses the effect of share repurchase on stock price and find out the factors which significantly influence the decision of repurchasing shares. We use the panel data sample selectin model to analyze the determinants of share repurchases and find out that leverage, P/B ratio and firm size are the most important factors in firm’s decision-making of share repurchases. However, cash ratio is not a significant factor in affecting the determinants of stock repurchases. The dissertation separates share repurchase issues into two different purposes, and shows that firms’ stock price increase significantly only for transferring shares to employee. To test the existence of endogenous problem, we use Hausman test to check the difference between the coefficients of endogenous and exogenous model. The empirical result suggests that share repurchase is not only an endogenous variable which is determined by the stock price, but also affects firms’ stock price positively.
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