The Effect of Winners and Losers Repurchase Announcement on Stock Return

• Main Authors: Chih-Hsiung Yu, 游智雄
• Other Authors: Chih-Chun Chen
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/06467750284480757716

碩士 === 國立宜蘭大學 === 人文及管理學院高階經營管理碩士在職專班 === 105 === Many companies often turn to running a treasury stock repurchase announcement when their stock prices are undervalued, a strategy that tends to buoy the stock performance of companies making such announcement with an invigorating performance, yet to judge from the stance of factual validation, some companies with excellent stock return performance would still run a treasury stock repurchase announcement, yet would such types of stocks perform differently has emerged as a topic that study vies to explore their outcomes. The study has utilized the Event Study Method in examining the announcing companies’ stock return performance among Taiwan’s public-listed companies repurchasing treasury stock from August 2000 to June 2016, and also further distinguishing companies making the announcement into winner announcement versus loser announcement, by which to examine the differences. The finding reveals that on the event date, the winners outperform the losers, yet on the following day of the event date, the losers perform better. To further distinguishing by the propensity of rise and fall, it can be found that from 0 to 20 days, the cumulative abnormal return performance among the big jump winners and the big fall losers performs the best, with the above findings intended as a reference to the investors.