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Equity-based compensation and the timing of share repurchases: the role of the corporate calendar

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  • Dittmann, Ingolf
  • Li, Amy Yazhu
  • Obernberger, Stefan
  • Zheng, Jiaqi (Jacky)

Abstract

We examine whether CEOs use share repurchases to sell their equity at inflated prices. We document that share repurchases, like equity-based compensation, are affected by the corporate calendar—the firm's schedule of earnings announcements and insider trading restrictions. The corporate calendar can fully explain why share repurchases and equity-based compensation coincide. The alignment with the corporate calendar is stricter in firms with strong internal governance or high external monitoring. When CEOs sell equity, firms are actually less likely to repurchase. Our findings reconcile earlier studies and highlight the importance of the corporate calendar for the timing of share repurchases.

Suggested Citation

  • Dittmann, Ingolf & Li, Amy Yazhu & Obernberger, Stefan & Zheng, Jiaqi (Jacky), 2025. "Equity-based compensation and the timing of share repurchases: the role of the corporate calendar," Journal of Accounting and Economics, Elsevier, vol. 80(1).
    • Handle: RePEc:eee:jaecon:v:80:y:2025:i:1:s0165410125000345
    DOI: 10.1016/j.jacceco.2025.101798
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    Keywords

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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