Institutional investment horizons and open-market stock repurchases: evidence from the Taiwan stock market
This article investigates how the investment horizon of a firm's institutional shareholders affects the outcome of stock repurchase. Our results show that repurchasing firms with long-term institutional investors experience significantly positive abnormal returns around the repurchasing announcements, actually buy back more shares during the execution period, and perform better over a subsequent 3-year period than repurchasing firms with short-term institutional investors. These findings suggest that repurchasing firms held by long-term institutional investors can acquire certification- and monitoring-related benefits, thus providing more credible signals about the true value of firms.
Year of publication: |
2012
|
---|---|
Authors: | Cheng, Lee-Young ; Lin, Yu-En |
Published in: |
Applied Financial Economics. - Taylor & Francis Journals, ISSN 0960-3107. - Vol. 22.2012, 8, p. 611-623
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Cheng, Lee-young, (2012)
-
Cheng, Lee-Young, (2012)
-
Lin, Yu-En, (2014)
- More ...