英文摘要 |
Many domestic studies declared that for large stockholder of a firm (also to be chief manager of the firm), the primary reason to execute open market share repurchases is to protect his mortgaged property of stocks. However, this reason is unable to explain why those large stockholders that have less financial leverage may also choose to execute share repurchases whenever there is a bad news concerned with the firm appeared. Our analysis finds that although the act to execute share repurchases may bring large stockholder some expenses, this action can on the other hand decrease stock volatility and therefore raise the stock price levels of the firm. The analysis also finds that when there is the situation such as: large stockholder possessing his firm’s stocks with comparatively large amount, investors showing fairly high degree of risk aversion, or the average number of stock supplies for each investor to be relatively large, the large stockholder has a stronger motive to execute open market share repurchases; on the contrary, under the situation such as: the probability of confirming the news to be bad being fairly high, the share repurchases needing to buy a comparatively large amount of stocks, or the bad news resulting price falling being relatively large, the large stockholder has less motive to execute share repurchases. |