DOES CORPORATE GOVERNANCE AFFECT INSTITUTIONAL OWNERSHIP AND SHARE REPURCHASE DECISIONS?

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.