Motivated by the significant capital allocated to repurchasing stock and its potential affect on price discovery, we develop an empirical model of changes in corporate stock repurchases. We find that share price, capital availability, dividend policy, firm size, and operating profitability...

We provide large sample evidence in response to anecdotal accounts that some managers increase corporate share repurchases in response to an increase in short selling. We discover a robust positive association exists between changes in quarterly share repurchases and contemporaneous changes in...

Fail-to-deliver (FTD) short sales occur when shares sold on trade day t are not delivered on settlement day t+3. FTDs can occur for a variety of reasons but generally indicate that short seller demand for shares exceeds the supply of shares available for loan. This study investigates whether the...

Fails-to-deliver (FTDs) place non-existent shares in circulation, and the SEC is concerned that FTDs, especially those by short sellers, are used to create a crisis of confidence “without a fundamental underlying basis.” To minimize FTDs, the SEC passed close-out rules during the financial...

When a short seller sells shares on day t (trade date) but fails to deliver those shares on day t+3 (settlement date), non-existent (electronic) shares are in circulation. Corporate executives and regulators often contend that high “fail-to-deliver” (FTD) levels indicate that short sellers...

The 2004 American Jobs Creation Act (AJCA or the Act) was intended to encourage U.S. companies to repatriate foreign earnings and invest them domestically to increase capital spending and employment. We investigate combined effects of two tax provisions, i.e., the repatriation tax holiday and...

Prior research suggests an asymmetric relation between CEO cash compensation and firm performance as measured by market-adjusted stock returns. As discussed by Leone et al. (2006), the underlying rationale for this asymmetry is the difficulty in the ex post settling- up of cash compensation. We...