The Role of Media in Share Repurchases

Cristian Pinto-Gutierrez ()

No 22, Serie Working Papers from Universidad del Desarrollo, School of Business and Economics

Abstract: I examine the impact that media coverage has on open market share repurchase outcomes. I find that media coverage around repurchase announcements are negatively related to firms’ actual repurchases following the announcements. This result suggests that only firms that do not attract sufficient investor attention to the announcements follow through on their repurchase programs. Furthermore, I find that the highest cumulative abnormal returns three, six, and 12 months following the announcements correspond to firms with the lowest media coverage. These results provide new evidence that media coverage helps improve market efficiency by increasing investor attention

Keywords: Investor attention; share repurchases; news analytics; media coverage (search for similar items in EconPapers)
Pages: 18 pages
Date: 2015-08
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Persistent link: https://EconPapers.repec.org/RePEc:dsr:wpaper:22

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