This paper investigates the magnitude and the main determinants of share price reactions to buy-back announcements of German corporations. For our comprehensive sample of 224 announcements that took place between May 1998 and April 2003 we find average cumulative abnormal returns around -7.5%...

This paper shows that abnormal stock price returns around the date of open market repurchase announcements are four times higher in Germany than in the US (12% versus 3%). We hypothesize that this observation can be explained by national differences in repurchase regulations. Our empirical...