The performance of Taiwanese firms after a share repurchase announcement

Chuan-Hao Hsu (), Hung-Gay Fung () and Yi-Ping Chang ()
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Chuan-Hao Hsu: Feng Chia University
Hung-Gay Fung: University of Missouri-St. Louis
Yi-Ping Chang: Soochow University

Review of Quantitative Finance and Accounting, 2016, vol. 47, issue 4, No 14, 1269 pages

Abstract: Abstract 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.

Keywords: Repurchase portfolio; Long-term performance; Stochastic dominance (search for similar items in EconPapers)
JEL-codes: G14 G35 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11156-015-0537-x

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