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Crash risk and conservatism : evidence from Borsa Istanbul

Toksoz, Tuba - In: Borsa Istanbul Review 24 (2024) 4, pp. 787-796

This study assesses the relationship between the likelihood of future stock price crashes and conservatism … reveals that firms with a greater degree of conservatism witness a significant reduction in crash risk after accounting for … the literature on conservatism, revealing that conservatism diminishes the ability of managers to withhold unfavorable …

Persistent link: https://www.econbiz.de/10014635404

A Model of Strategic Stock Buybacks

Chen, Alvin - 2020

This paper studies the authorization and execution of buybacks in a Kyle micro-structure setting with two informed parties: a speculator who trades on his own account and a manager who implements buybacks for the firm. Buybacks introduce two opposing economic forces. On the one hand, informed...

Persistent link: https://www.econbiz.de/10012841170

Buyback Monitor January 2010 : Corporate Stock Buyback Profits of 280 Firms 2000-2009

Gumport, M. A. - 2010

“Modern” accounting adheres to 15th century conventions in maintaining that corporate stock repurchases never result in 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...

Persistent link: https://www.econbiz.de/10013149526

Accounting Rules? Stock Buybacks and Stock Options : Additional Evidence

Griffin, Paul A. - 2010

This paper finds that CEO stock options influence the choice, amount, and timing of funds distributed as a buyback. These results favor a managerial opportunism motive for buybacks over other theories and support two key research expectations - that buybacks impose option-induced agency costs on...

Persistent link: https://www.econbiz.de/10013141482

Why are Stock Buyback Announcements Good News?

Eberhart, Allan - 2012

The positive stock price reaction to stock buyback announcements reported in many previous studies is commonly interpreted as a signal that the firm's future profitability will rise, or that the firm is decreasing its agency costs by dispersing free cash flow, or that the firm is increasing its...

Persistent link: https://www.econbiz.de/10012713465

Share Repurchase : Does it Increase the Informativeness of Market Prices?

de La Bruslerie, Hubert - 2020

Share repurchases are transactions which are supposed to cause a market reaction through a signaling approach. However looking only at cumulated abnormal returns (CARs) is insufficient and the results are sometimes contradictory. We introduce the concept of informativeness to assess if...

Persistent link: https://www.econbiz.de/10012856824

Market Reaction to Actual Daily Share Repurchases in Greece

Drousia, Angeliki - 2019

Using a unique, hand-collected data set of actual daily share repurchases from the Athens Stock Exchange, we examine the stock market reaction around the disclosure date of actual share repurchases, the factors that affect the size of that reaction, and the motives behind share acquisitions. We...

Persistent link: https://www.econbiz.de/10012900519

What Drives the Declining Wealth Effect of Subsequent Share Repurchase Announcements?

Ding, David K. - 2018

Recent academic studies document that open market share repurchase announcement period returns are much lower than those reported in early studies. This study finds that the lower announcement returns are attributed to repeat announcements that dominate the sample in the recent period. The...

Persistent link: https://www.econbiz.de/10012931441

Is Price Support for Overvalued Equity a Motive for Increasing Share Repurchases?

Liu, Harrison - 2016

Prior research shows that companies repurchase stock during quarters with low returns, presumably because the stock is undervalued. We focus on repurchase increases and investigate another motive: Are repurchases increased to provide price support for a stock that, despite recent low returns,...

Persistent link: https://www.econbiz.de/10013007436

Why Share Repurchases are Not a Panacea for Increasing Share Prices

Chen, Tai-Yuan - 2017

This research examines factors deteriorating share price performance before and after repurchase announcements. We find share price performance before announcements can be attributed to operating performance and agency problems. But, operating performance is the primary factor determining...

Persistent link: https://www.econbiz.de/10012963667