The earning Impacts of Stock Repurchase: A Case Study of Taiwan Listing Companies
| Autor: | HSU,CHEN-CHEN, 徐真真 |
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| Rok vydání: | 2017 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 105 Stock repurchases are a method for the mechanism of earnings management; therefore, companies may affect changes of its earnings through this method. However, it takes a large amount of cash to apply the above-mentioned method, which will be related to the structure of cash flow for the company. In other words, the degree of financial constraints for the company will be an important factor for stock repurchases. Previous studies have examined the financing behavior of enterprises from the perspective of information asymmetry, which showed that information asymmetry in enterprises between assets in place and growth opportunities will be different depending on overinvestment and underinvestment problems resulted from the financing method chosen by enterprises. Rather, this study explored the effect of financial constraints on earnings management with the perspective from stock repurchases. This study used firm size, service life and HP index to measure financial constraints. In addition, since the phenomenon of family-owned business generally lies in listed company in Taiwan, this study also further examined the above-mentioned phenomenon by using family-owned business as clustering sample. The empirical results show that when the firm size is bigger, the sign of repurchasing increment stock would be more evident, showing a positive correlation between them. Besides, when service life of the company is longer, the sign of repurchasing increment stock would be more evident. Moreover, this study observed whether the degree of financial constraints for the company would affect its increment stock repurchases, that is, taking HP index into consideration. As shown by the results, there is no effect in increment stock from the degree of financial constraints for the company. Also, as for family-owned businesses, it was found that when the degree of financial constraints is higher, it would be more willing to repurchase its own stock. Rather, as for non-family-owned businesses, when the degree of financial constraints is higher, it would be less willing to repurchase its own stock, and tend to use real earnings management. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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