Open Market Repurchases: The Value From Buying Shares At A Discount
This article shows that share repurchase announcements create value for shareholders when the shares of the industrial firm sell at a discount from the value of the underlying assets, even when shareholders and managers share full information about the firm's prospects and the firm's operating performance is not expected to improve. The value created by capturing the discount on the repurchased shares is a function of only two variables: the percentage discount prior to the announcement and the proportion of shares to be repurchased. 2000 Morgan Stanley.
Volume (Year): 13 (2000)
Issue (Month): 1 ()
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