| Summary: | 碩士 === 國立中正大學 === 經濟系國際經濟學研究所 === 107 === An article by Baker, Gallagher and Morgan (1981) found that in recent years, the company’s motives for implementing stocks repurchase have gradually changed from financial decisions to investment decisions. However, with the advancement of technology and personal computer, the coverage of internet has a boosting growth towards public after the millennium. The influence of social media outlets has a significant influence on corporate finance. Therefore, information asymmetry has become less obvious. Thus, this thesis wants to investigate the correlation between the abnormal return of announcing stocks repurchase and social media.
The sample period of this thesis lies between 2014 and 2018, with information of 251 corporates that announced stocks repurchase. Moreover, using the Event Study to explore the correlation between the announcement of stocks repurchase and the tone of news media. This thesis provides investors with supportive evidence while investing, wishing to maximize their returns.
The results of the thesis are found below:
1. News exposure has a significant negative effect on the abnormal return of the announcement of the stocks repurchase corporate.
2. The rate of negative tone of the news has no effect on the abnormal return of the announcement of the stocks repurchase.
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