The performance of Taiwanese firms after a share repurchase announcement

This study uses stochastic dominance analysis to examine the financial performance of Taiwanese firms from 2000 to 2013 after their announcement of a share repurchase program. Our results show that the firms in the repurchase portfolio perform poorly prior to the announcement, but improve dramatical...

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Bibliographic Details
Published inReview of quantitative finance and accounting Vol. 47; no. 4; pp. 1251 - 1269
Main Authors Hsu, Chuan-Hao, Fung, Hung-Gay, Chang, Yi-Ping
Format Journal Article
LanguageEnglish
Published New York Springer US 01.11.2016
Springer Nature B.V
Subjects
Abnormal returns
Accounting/Auditing
Benchmarks
Corporate Finance
Econometrics
Economics and Finance
Finance
Financial performance
Investments
Operations Research/Decision Theory
Original Research
Ratios
Regulation
Repurchase
Securities buybacks
Securities redemptions
Stock exchanges
Studies
Taiwan
Taiwan
G35
Stochastic dominance
Repurchase portfolio
Long-term performance
G14
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Summary:This study uses stochastic dominance analysis to examine the financial performance of Taiwanese firms from 2000 to 2013 after their announcement of a share repurchase program. Our results show that the firms in the repurchase portfolio perform poorly prior to the announcement, but improve dramatically to outperform different benchmarks after the repurchase announcement. For firms in the repurchase portfolio, we find that (1) the firms with a high book-to-market ratio outperform firms with a low book-to-market ratio, (2) smaller firms outperform larger firms, and (3) there is no significant difference in performance between firms with different percentages of completing the repurchase programs.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
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ISSN:0924-865X
1573-7179
DOI:10.1007/s11156-015-0537-x