Since both dividend and stock repurchases are ways corporate to pay, some studies explain the announcement results by information signalling and free cash flow hypotheses. The stock repurchases have been implemented in Taiwan over many years, and therefore this paper explores whether stock repurchase will affect the result of dividend announcement. The goal of this paper is to investigate whether stock repurchase is a substitute of cash dividends. We find stock repurchase will strengthen the positive result of dividend increasing and reduce the negative impact of dividend decreasing. In addition, we find that the effect of stock repurchase on cash dividend announcement result is larger than that on stock dividend. Besides, information signalling, free cash flow, and firm size can explain the results of dividend announcement, especially in value stocks.