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Does Corporate Governance Affect Institutional Ownership And Share Repurchase Decisions?

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  • Hung-Hsi Huang
  • Ching-Ping Wang
  • Kun-Hui Lin
  • Wan-Ru Jhao

Abstract

This study investigates the relevance among corporate governance mechanism, institutional ownership and share repurchase decisions. Examining 220 exchange-listed companies in Taiwan during 2004 to 2006, the main findings are as follows. First, corporate governance mechanisms affect share repurchase decisions as well as institutional investor ownership. Next, the ownership of institutional investor depends on the interaction between corporate governance mechanisms and share repurchase decisions. Additionally, the share repurchase decision is influenced by interaction between corporate governance mechanisms and ownership of institutional investors. Finally, when the company size is incorporated as a control variable, the adjusted R-square for the multiple regression is improved.

Suggested Citation

  • Hung-Hsi Huang & Ching-Ping Wang & Kun-Hui Lin & Wan-Ru Jhao, 2010. "Does Corporate Governance Affect Institutional Ownership And Share Repurchase Decisions?," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(4), pages 35-40.
    • Handle: RePEc:ibf:gjbres:v:4:y:2010:i:4:p:35-40
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    References listed on IDEAS

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    1. Ikenberry, David & Lakonishok, Josef & Vermaelen, Theo, 1995. "Market underreaction to open market share repurchases," Journal of Financial Economics, Elsevier, vol. 39(2-3), pages 181-208.
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    3. Paul Gompers & Joy Ishii & Andrew Metrick, 2003. "Corporate Governance and Equity Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 107-156.
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    5. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
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    Cited by:

    1. Andriosopoulos, Dimitrios & Gaganis, Chrysovalantis & Pasiouras, Fotios & Zopounidis, Constantin, 2012. "An application of multicriteria decision aid models in the prediction of open market share repurchases," Omega, Elsevier, vol. 40(6), pages 882-890.

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    More about this item

    Keywords

    Corporate governance; institutional ownership; share repurchase;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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