The Study of How IRM Will Influence the Firm Value Via Stock Repurchase--Evidence from the Chinese Enterprises Carry on the Open Market Repurchases Which Listed in Hong Kong

摘要

Stock repurchases have become an important financial policy for listing firms. This paper choose the Chinese enterprises which carry on open market repurchase as well as listed in Hong Kong as the research object, to investigate the cumulative abnormal returns during the repurchase window time. Furthermore, the paper also study how the Investor Relationship Management(IRM)will influence the value of the enterprises both in the short-term and longterm as a adjustment variable. The study found that: (1) using the event methodology, as soon as the company carries on open market repurchase, it really produced positive cumulative abnormal returns; ( 2 ) using the price per book value to indicate the extent of undervalued for the company, both for the cumulative abnormal returns during the window time and the long-term value, its influence is negative distinctly; (3) as one of the interactive communication strategy, IRM is being for the purpose of transferring more information of the company, then the external market will identify the company value correctly, making the stock price keep pace with the company value.