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tax expenses is responsible for a full one-third of all profit growth for S&P 500 nonfinancial firms over the prior two …
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This report updates and expands earlier studies to look at the profitability of $349.7 billion of buybacks executed from 2000 through early 2010 by a sample of 275 corporations. The sample companies, drawn mainly from the technology sector, enjoy total equity market value today of $945.6...
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This paper examines stock price formation subsequent to management forecasts of quarterly earnings. In the post-announcement period, we find a significant upward price drift for both good news forecasts and bad news forecasts. Combined with the asymmetry in the initial market response, the...
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: • Largest percentage profit (return on cash invested in buybacks)• Largest percentage benefit (consequent change in stock price …
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We propose and test a catering theory of earnings guidance. Managers cater to reference point dependent investor preferences by issuing excessively optimistic earnings forecasts if investors' stock returns since purchase are comparably low and vice versa. As predicted by our model, earnings...
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a profit or loss for a firm. In actual practice, however, few purely financial decisions rival stock repurchases in … their bearing on the well-being of shareholders. Because profit/loss on buybacks is excluded from the audited financial … stock buybacks.This report also ranks the stock repurchase results of individual companies: By largest percentage profit …
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