Actual share repurchases, timing and liquidity
Research 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 bid–ask spread or depth. Our results also indicate that share repurchases largely reflect contrarian trading rather than managerial timing ability.
|Date of creation:||2007|
|Publication status:||Published in Journal of Banking & Finance, 2007, 31 (3), pp.915-938|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00136568|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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