In inefficient stock markets payout policy may be directly relevant for stock prices, not only by way of announcement effects considered in signaling games. We show that paying out free cash flow, either as a dividend or via repurchasing shares, has in general a positive price impact and...

We examine the nature of information contained in insider trades prior to corporate events. Insiders' net buying increases before open market share repurchase announcements and decreases before seasoned equity offers. Higher insider net buying is associated with better post-event operating...

Research aims: The purpose of this paper is to examine the impact of open market share repurchases on stock liquidity of listed companies in Thailand.Design/ Methodology/Approach: The sample includes 3,055 actual share repurchases made by 75 listed firms in the Stock Exchange of Thailand (SET)...

The paper investigates the conditions surrounding Britain's open market repurchases over the period 1993-2010. We find that the high leverage and fiscal favouritism of repurchases over dividends deter the market's receptiveness. Thus it is evident that repurchases are influenced by institutional...

This study examines whether the announcement of REIT open-market stock repurchase programs contain information content about future operating performance over the period 1990-2001. We find no evidence that REIT stock buybacks are positively related to the operating performance. In fact, the...

Bond repurchases are widespread in the US and other markets but data limitations have thus far prevented market-timing analysis. We fill this gap using unique daily data from Israel and show that firms time the market in their actual open market bond repurchases. Firms repurchase their bonds...

This study examines whether the CEO uses share repurchases to sell her equity grants at inflated stock prices, a concern regularly voiced in politics and media. We find that the timing of buyback programs and equity compensation, i.e., the granting, vesting, and selling of equity, is largely...

This paper documents the spillover effect of firms' financial restatements on their peer firms' stock repurchases. In a difference-in-differences setting, I find a causal relationship where one firm's financial restatement increases its peer firms’ propensity to repurchase shares by 12.9...

Using new monthly data we investigate open-market repurchase executions of US firms. We find that firms repurchase at prices which are significantly lower than average market prices. This price discount is negatively related to size and positively related to market-to-book ratio. Firms'...