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The determinants of share repurchases in Europe

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  • Andriosopoulos, Dimitris
  • Hoque, Hafiz
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    Abstract

    In this paper, we assess which firm-characteristics are associated with a firm's decision to announce a share repurchase programme in a cross-country framework. In the models, we incorporate firm-specific financial characteristics and measures of share price performance. We find that size, cash dividends, and ownership concentration consistently have a significant impact on share repurchase announcements in all three countries under study. However, the share price performance does not explain the decision to announce a share repurchase. The robustness of the proposed models is investigated across different dimensions of sample-matching methods and with a boot-strap technique. Finally, we construct a number of models with a robust predictive ability of a firm's likelihood to announce a share repurchase.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Review of Financial Analysis.

    Volume (Year): 27 (2013)
    Issue (Month): C ()
    Pages: 65-76

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    Handle: RePEc:eee:finana:v:27:y:2013:i:c:p:65-76

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    Web page: http://www.elsevier.com/locate/inca/620166

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    Keywords: Share repurchases; Determinants; Information asymmetry; Logit model; Boot-strap;

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    Cited by:
    1. Andriosopoulos, Dimitris & Andriosopoulos, Kostas & Hoque, Hafiz, 2013. "Information disclosure, CEO overconfidence, and share buyback completion rates," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5486-5499.

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