Corporate events happen in waves. In this paper, we examine the timing patterns of five different types of corporate event waves (new stock and seasoned equity issues, stock and cash-financed acquisitions, and stock repurchases) using a comprehensive dataset of more than 151,000 corporate...

Firms with high agency costs of overinvestment have significantly more positive dividend initiation announcement returns than other firms do. This paper presents the results from three experiments consistent with this conclusion: (i) dividend initiation announcement returns are significantly...

This paper studies the relationship between companies' choice of capital structure and their stock market returns from a corporate governance perspective. A portfolio buying low-levered, zero payout stocks and selling high-levered, zero payout stocks earned abnormal returns of 8.5% per year from...

In this paper, we examine the relationship between managerial stock option holdings and the decision to announce a repurchase of the firm's common stock. Managerial stock option holdings should reinforce the traditional undervaluation, free cash flow and capital structure motives for...

This paper provides an overview of existing research on how corporate restructuring affects the wealth of creditors. Restructuring is defined as any transaction that affects the firm's underlying capital structure. Thus, it reaches well beyond asset restructuring and includes transactions such...

While strong shareholder control benefits the firm by preventing Free-Cash-Flow problems in the good state of business cycles, it is costly to the firm in exacerbating the Conflict-of-Interest problem between shareholders and creditors in the bad state. Investigating how firm financial policies...

This paper investigates the possibility of false signaling by firms announcing open-market stock repurchases. We examine a sample of 281 open-market share repurchases, with the self-styled reason of undervaluation, by firms between 1993 and 1998. Our results showed no evidence of an upward...

We provide evidence suggesting that both the post-repurchase long-term abnormal returns and the reported improvement in operating performance documented in prior studies are driven, at least partly, by pre-repurchase downward earnings management, rather than genuine growth in profitability. The...

Signaling is the most commonly cited explanation for stock repurchases in the academic literature. Yet, there is little evidence on whether managers intentionally use repurchases as signaling devices. Using a firm's financial reporting behavior to infer managerial intent, we find evidence...

We measure flexibility of dividend policy and study its impact on abnormal shareholders' returns in the European Union. When we use relative repurchase frequency and relative repurchase amounts as a measure of flexibility, civil law companies are more flexible. A more frequent use of repurchases...