Park, Youngkyu; Jung, Kooyul - In: Review of Pacific Basin Financial Markets and Policies … 08 (2005) 01, pp. 81-112
This study examines the motive for stock repurchase. We examine four hypotheses — undervaluation, signaling, free cash flow, and optimal leverage hypotheses — using both short-run and long-run market reactions. We find that the undervaluation hypothesis is most consistent with both short-run...