Market underreaction to open market share repurchases
نویسندگان
چکیده
منابع مشابه
Open Market Repurchases: Signaling or Managerial Opportunism?
Managers conduct open market repurchases ("OMRs") for many different reasons, including to distribute excess cash. However, the most widely discussed explanation for OMRs is the "signaling theory": that managers announce OMRs to signal that the stock is underpriced. The first purpose of this paper is to show that the signaling theory is theoretically problematic—in part because it assumes manag...
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This paper examines open market share repurchases in Canada (called Normal Course Issuer Bids—NCIB). Similar to announcements of U.S. open market share repurchases, announcements of Canadian NCIBs are accompanied by a positive stock price reaction. If NCIBs signal information, then it is not in the same manner as U.S. repurchases. Canadian firms usually announce the legal maximum proportion of ...
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ژورنال
عنوان ژورنال: Journal of Financial Economics
سال: 1995
ISSN: 0304-405X
DOI: 10.1016/0304-405x(95)00826-z