Actual Share Repurchases , Price Efficiency , and the Information Content of Stock Prices ∗
نویسندگان
چکیده
We examine the impact of share repurchases on the information content of stock prices using several measures of price efficiency. The study is based on manually collected data on share repurchases in the United States for the period 2004-2010. We find that share repurchases make prices more efficient. In particular, share repurchases increase the accuracy of the stock price after negative information comes to the market. We conclude that share repurchases make prices more informative by providing price support at fundamental values. We find no evidence that share repurchases incorporate private information into the stock price or that share repurchases increase the noise in stock
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