The Study On Relation Between Open Market Repurchases and Corporate Performance in Taiwan Listed Firms

Abstract

This study uses the listed firms that announced the repurchase of stocks for the first time from 2015 to 2019 as the research samples and analyzes the performance of the corporation’s stock price changes after the announcement through the event study and further observes the stock price compensation and the corporate performance Based on the results of this research it is found that the corporation’s stock price showed negative cumulative abnormal returns before the announcement After the announcement significant positive cumulative abnormal returns were generated indicating that the announcement of the stock repurchase plan has a signal launch effect and will indeed help the stock price in the short-term In addition in terms of the corporation 's future performance the company announced the extent to which the accumulated positive abnormal returns generated by the implementation of treasury stocks will be executed by the company in order to have a positive impact on the corporation’s short-term performance when the corporation’s implementation of the treasury stock buyback ratio is higher it will improve the corporation’s future performance On the other hand the corporation uses the accumulated abnormal returns and the actual implementation of treasury stock buybacks as a declaration of the strength of future operational performance growth This research believes that the corporation is implementing a treasury stock buyback plan to deliver good expectations for future performance and supports the signaling hypothesis

Date of Award	2021
Original language	English
Supervisor	Hsuan-Chu Lin (Supervisor)