IDEAS home Printed from https://ideas.repec.org/a/aza/rmfi00/y2023v16i1p34-51.html
   My bibliography  Save this article

What can we learn about repurchase programmes and systemic risk? Evidence from US banks during financial turmoil

Author

Listed:
  • Hamouda, Foued

    (Higher Institute of Management of Tunis GEF2A-Lab, and Higher Institute of Management of Gabès, Tunisia)

Abstract

This paper contributes to the debate on systemic risk by measuring and comparing systemic risk and interconnectedness when banks repurchase shares during financial turmoil. It assesses the extent to which buyback programmes within banks contribute to systemic risk, relying on several measures of systemic risk and connectedness in a sample of 112 US banks during both a tranquil and an unstable period. Empirical results reveal remarkable increases in systemic risk in repurchasing banks compared to non-repurchasing banks and they are more exposed to it in difficult periods such as the European debt crisis and COVID-19. Banks that repurchased shares strengthened indirect links during systemic events and are potentially riskier. The results also classify and rank banks in terms of systemic risk involvement and connectedness and contribute to the identification of systematically important banks.

Suggested Citation

  • Hamouda, Foued, 2023. "What can we learn about repurchase programmes and systemic risk? Evidence from US banks during financial turmoil," Journal of Risk Management in Financial Institutions, Henry Stewart Publications, vol. 16(1), pages 34-51, January.
    • Handle: RePEc:aza:rmfi00:y:2023:v:16:i:1:p:34-51
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/7403/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/7403/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    financial crisis; systemic risk; bank networks; interconnectedness; buyback programmes; COVID-19;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:rmfi00:y:2023:v:16:i:1:p:34-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.