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How do share repurchase programs influence stock prices and operating performances?

In this paper, we investigate the information content of the share repurchase program. We find that the announcing firms¡¦ stockholders earned positively significant abnormal returns around the announcements. The results show that such share buyback announcements signal positive information about the value of the firms, which suggest that the announcing firms were undervalued previously. Consistent with the signal hypothesis, we also find that share buyback announcements are followed by an increase in the operating performance. These empirical results support the signal hypothesis implies that the stock buyback programs have information content about the future improving profitability of the firms.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0621105-202437
Date21 June 2005
CreatorsHua, Chia-Yi
ContributorsFeng-yu Ni, Anlin Chen, Chin-Shun Wu
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0621105-202437
Rightswithheld, Copyright information available at source archive

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