Lin, Ji-Chai; Stephens, Clifford P.; Wu, YiLin - In: Journal of Banking & Finance 42 (2014) C, pp. 283-301
We hypothesize that announcing open market share repurchases (OMRs) to counter negative valuation shocks reveals repurchasing firms’ lost growth opportunities or underperforming assets to potential bidders, making them more likely to become takeover targets. This also leads their investors to...