Actual share repurchases, timing and liquidity
AbstractResearch on the impact of open market share repurchases has been hindered by the lack of data available on actual share repurchases in many countries, including the US. Using a previously unused database containing detailed information on 36,848 repurchases made by 352 French firms, we show that corporate share repurchases have a significant adverse effect on liquidity as measured by bidâask spread or depth. Our results also indicate that share repurchases largely reflect contrarian trading rather than managerial timing ability.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Banking & Finance.
Volume (Year): 31 (2007)
Issue (Month): 3 (March)
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Web page: http://www.elsevier.com/locate/jbf
Other versions of this item:
- G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
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by PK in DQYDJ.net on 2012-09-04 14:43:16
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