The Dividend and Share Repurchase Policies of Taiwan Firms versus Life Cycle Theory
|關鍵字:||生命週期;現金股利;庫藏股;life cycle;cash dividend;repurchase|
本文使用Anthony and Ramesh(1992)之生命週期分類方法，以銷貨成長率、股利支付率和年齡分出公司之成長期(growth stage)、成熟期(mature stage)、衰退期(stagnant stage)，並以多項logit模型及巢狀logit模型來嘗試找出影響公司各生命週期支付現金政策之因素。
In this study, we follow the classification of life-cycle stages by Anthony and Ramesh (1992), and differentiate the growth stage, the mature stage, and the stagnant stage of a firm with its sales growth rate, dividend payout ratio, and age. We apply both multinomial logit model and nested logit model in examining the factors impacting firms’ cash payout policy under different stages. Taking cash and cash equivalent and the firm size as factors affecting whether firms disperse cash, we find that firms in the growth stage tend to retain more cash for investment, and that, in whole industries, the electronics industry, and the non-electronic industry, smaller firms tend to pay less cash, regardless of stages. In whole industries, the electronics industry, and the non-electronic industry, the operating profit ratio is significantly and positively related to cash dividend payout. Also, in whole industries, the electronics industry, and the non-electronic industry, the relationship between the non-operating profit ratio and stock repurchase is significantly negative in the growth stage and significantly positive in mature and stagnant stages. It shows that firms in the growth stage do not tend to repurchase stocks, even if there is an additional inflow of non-operating income, and that firms in mature and stagnant stages take stock repurchase into consideration when distributing additional non-operating income. The directors and supervisors’ pledge ratio is significantly related to the Debt/Equity ratio for firms in the mature stage, and it is also significantly related to stock repurchase for firms in the stagnant stage. The previous-period rate of return is significantly related to stock repurchase for firms in growth and stagnant stages in whole industries, as well as for firms in mature and stagnant stages in the electronics industry. It shows that firms in these stages are more likely to repurchase stocks due to an underestimation of stock prices.
|Appears in Collections:||Thesis|