We investigate how Taiwanese listed firms' choice over direct cash distributions or open-market repurchases as their capital-reduction payout method. We propose three hypotheses to explain their choice: the supply inelasticity of stock hypothesis, the market-timing hypothesis and the flexibility...

We set out in this study to analyze the expiration effects of index futures on the cash market in Taiwan, and find that both volatility and trading volume are higher on the final settlement days as compared to normal trading days. We also calculate the volume of open interest for final...