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.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0621105-202437 |
| Date | 21 June 2005 |
| Creators | Hua, Chia-Yi |
| Contributors | Feng-yu Ni, Anlin Chen, Chin-Shun Wu |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0621105-202437 |
| Rights | withheld, Copyright information available at source archive |
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