In addition to distributing dividends and repurchasing shares, directly distributing cash to shareholders in order to reduce capital is an alternative form of paying out. A firm can alter its capital structure by repurchasing shares or by reducing capital. This paper employs the approach of...

Taiwanese regulations mandate strict and detailed guidelines for repurchase programs. This provides us a superb opportunity to examine the corporate behavior by using a comprehensive dataset of more than 3,000 events of Taiwanese corporate repurchase programs from 2000 to 2011. We find that...