臺灣博碩士論文加值系統

Previous empirical research has documented that share repurchase are associated with positive significant abnormal returns. This association is rationalized on the basis that share repurchase announcement acts as a signal of future prospects. This research aims to investigate the existence of intra-industry transfers where share repurchase announcement of one firm is extrapolated to other companies in the same industry portfolio. We examine intra-industry stock price response to the share repurchase announcements of 218 Taiwan firms spanning August 2000 to October 15, 2001. The average and cumulative abnormal returns for announcing firm and rivals are positive. Regression results indicate that contagion effect dominates competitive effect; firms with similar cash flow and highly stock price correlation to the announcing firms enjoy more pronounced cumulative abnormal returns.

I. Introduction ………………………………………………………1


II. Literature Review …………………………………………………3

1. Share Repurchase ……….……………………………………… 3
2. The Intra-industry Effects of Share Repurchase…………… 7

III. Data and Methodology ……………………………………………12

1. Data………………………………………………………………… 12
2. Methodology ……………………………………………………… 13


IV. Empirical Results ………………………………………………16

1. Sample Description ……………………………………………… 16
2. Event Study Findings …………………………………………… 20
3. Cross-sectional Regression …………………………………… 29


V. Conclusion …………………………………………………… 33


Reference ……………………………………………………………………35

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