CHI, CHIH-YI; YU, SHIH-TI; LI, YI TZU; LU, YU-LUNG - In: Annals of Financial Economics (AFE) 09 (2014) 02, pp. 1440010-1
We examine whether firms tend to buy back their stocks to a greater extent when the managers learn there will be positive earnings impacts. We use a two-part model (Duan et al., 1983) to address this issue. First, we use a Probit model to estimate the decision of stock repurchase. Then we use...