The authors investigate whether the effects of stock buyback announcements on credit default swap (CDS) spread changes for US firms depend on macroeconomic conditions. The authors find that abnormal CDS spreads increase for small-sized firms announced to repurchase a higher share ratio during...

Using data from bank holding company regulatory reports, we examine the relationshipbetween stock repurchases and financial performance for a large sample of bank holding companies over the years 1987 to 1998. The primary result is that higher levels of repurchases in one year are associated...

This report updates and expands earlier studies to look at the profitability of $349.7 billion of buybacks executed from 2000 through early 2010 by a sample of 275 corporations. The sample companies, drawn mainly from the technology sector, enjoy total equity market value today of $945.6...

In practice, open-market stock repurchase programs outnumber self tender offers by approximately ten to one. This evidence is puzzling given that tender offers are more efficient in disbursing free cash and in signaling undervaluation - the two main motivations suggested in the literature for...

Optimizing the means of wealth distriubution to shareholders is a fundamental issue for financial managers. Contemporary theory of finance tries to solve the problem of measuring the impact of shareholders' benefits (both cash and non-cash) on the value of the company. From the classical point...

Billett and Xue (2007) document that the ex ante (pre-repurchase) takeover probability has a positive and significant impact on share repurchases, but there is no evidence that share repurchases are indeed associated with fewer ex post takeover bids. We examine whether share buyback deters...

Most financial professionals recognize that share repurchases, all other things equal, should increase a firm's stock price and earnings per share. Our goal is to provide financial executives, investment analysts, and shareholders with a practical understanding of the accounting and financial...

This article surveys the theoretical and empirical studies on share repurchases. Share repurchases have surpassed cash dividends and become the dominant form of corporate payouts since the last decade. This study provides a brief description of five major types of share repurchases and considers...

Few purely financial decisions rival stock repurchase programs in their bearing on the well-being of shareholders. Absent better financial reports on buybacks, an occasional tally of results seems appropriate. The current “Monitor” extends an earlier study back to 2000 to look at...

We develop a structural model of the firm that allows after-interest cash to be directed to dividends, buybacks or some combination thereof. We study the effects of dilutions and buybacks on the value of the firm's claimants and on options written on the stock. We distinguish between options on...