Share repurchase regulations: do firms play by the rules?
AbstractOpen market share repurchases are strictly regulated to prevent companies from profiting from insider information. We examine compliance with these rules in France, where the mandatory disclosure of share repurchases provides detailed information on repurchases actually undertaken. Using a database containing 36,848 repurchases made by 352 French firms over the period 2000-2002, we show that very few firms fully comply with the regulations for all their buybacks. Non-compliance has an adverse effect on liquidity only for the smallest and least liquid firms.
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Date of creation: 2009
Date of revision:
Publication status: Published, International Review of Law and Economics, 2009, 29, 81-96
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open market share repurchases; insider trading; regulations; liquidity;
Other versions of this item:
- Ginglinger, Edith & Hamon, Jacques, 2009. "Share repurchase regulations: Do firms play by the rules?," International Review of Law and Economics, Elsevier, vol. 29(2), pages 81-96, June.
- G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
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