Good News and Bad News about Share Repurchases

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Good News and Bad News about Share Repurchases*

We estimate the cross-sectional relationship between open market repurchases and accounting data for a large sample of dividend-paying and non-dividend-paying firms over a twelve year period (1984-95). Consistent with the hypothesis that firms use open market repurchases to reduce the agency costs of free cash flow, we find that repurchases are positively related to proxies for free cash flow a...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 1998

ISSN: 1556-5068

DOI: 10.2139/ssrn.113268