Share repurchases and short sales under ambiguity

Mark L. Muzere

Economics Letters, 2019, vol. 180, issue C, 67-70

Abstract: We examine corporate pay out policies in a setting with short sales where investors face ambiguity about firms’ cash flows. We show that firms use share repurchases and a combination of share repurchases and dividend payments to fight short sales.

Keywords: Ambiguity; Beliefs; Cash flows; Short sales (search for similar items in EconPapers)
JEL-codes: G11 G12 G35 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:180:y:2019:i:c:p:67-70

DOI: 10.1016/j.econlet.2019.04.011

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