Share Repurchases and Stock Returns -- Observation from Sequential Execution Records
| Autor: | HSIEH, TUNG-SHENG, 謝東昇 |
|---|---|
| Rok vydání: | 2007 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 95 In this study, we argue that when firms conducting a corporate event multiple times send signals to the public, investors reacting to this current announcement are affected by the past experience of announced firms’ actual repurchase. Using Taiwanese officially detailed execution process data set of repurchasing firms required to publicize after two months, we take the accurate number of execution rate to evaluate the relation with actual share repurchase and stock returns. Examining the different extent of current execution rates and drawing out the first-time announcing effects, we find that stock performance following share repurchase programs is correlated to previous execution records. Thus, based on investors’ perspectives, we find stock markets are rationally depended on prior and past experience of share repurchase execution rate to identify new announcing signals. In addition, we also investigate the relationship with the pre-announcement stock returns, stock performance after announcing, and actual repurchase. It is found that the higher the past returns are, the better the subsequent performance of announcing firms, even under the lowest execution rate. Therefore, for firm managers, it seems to be a possible way to boost their stock returns at little or no cost by combining the favorable signaling effect of share repurchase with positive price momentum strategy. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
| Externí odkaz: |
|