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Share repurchase regulations: do firms play by the rules?

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Author Info
Edith Ginglinger () (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX)
Jacques Hamon () (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX)

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Abstract

Open 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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File URL: http://halshs.archives-ouvertes.fr/docs/00/14/39/74/PDF/RegulationRepurchasesFrance.pdf
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Publisher Info
Paper provided by HAL in its series Post-Print with number halshs-00143974_v1.

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Date of creation: 2009
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Publication status: Published, International Review of Law and Economics, 2009, 1-35
Handle: RePEc:hal:journl:halshs-00143974_v1

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Related research
Keywords: open market share repurchases; insider trading; regulations; liquidity;

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This page was last updated on 2009-12-4.


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