자사주 매입이 기업의 배당 및 장기성과에 미치는 영향

This paper took notice of the recent trend of active stock repurchase of domestic companies and analyzed the effect stock repurchase has on dividend policy and also whether dividend and stock repurchase strategy has an impact on long-term performance of companies. According to the empirical analysis on companies listed on the Korea Stock Exchange, the higher the stock repurchase during the fiscal year, the higher the dividend yields. This result is contrary to preceding research in the U.S. which states that stock repurchase is gradually substituting dividends. The findings of this paper mean that dividend and stock repurchase are not exact substitutes to each other because most Korean companies do not cancellate the shares after stock repurchase, and when surplus profit increases, this is distributed to both dividends and stock repurchase. Measurement of long-term performance of companies showed that those with high dividend yield and no stock repurchase and those with high dividend yield and frequent stock repurchase both displayed significantly stronger performance than the benchmark. On the other hand, there was hardly any difference in long-term performance between the group of companies with a very low dividend yield and frequent stock repurchase and the benchmark. This suggests that high dividend yield has a positive impact on enhancing the long-term value of the company, however stock repurchase without cancellation of shares has minimal impact on long-term performance of companies.