Additional evidence on the frequency of share repurchases and managerial timing

Adri De Ridder

The Quarterly Review of Economics and Finance, 2015, vol. 56, issue C, 154-164

Abstract: Are firms with multiple share repurchase programs associated with positive abnormal performance and is the performance related to cash flow levels in firms? Do managers repurchase the firm's shares at a lower price than a naïve investor? In this paper, I analyze these questions using a unique hand-collected data set with detailed information of repurchase transactions. The findings show that firms with multiple repurchase programs have returns that exceed the return on stocks in firms with fewer programs by 79 basis points per month and that firms with high cash flows have higher returns than firms with low cash flows. The results do not support the idea that managers can repurchase the firm's stocks at a lower price than an average investor can.

Keywords: Multiple share repurchases; Abnormal returns; Managerial timing (search for similar items in EconPapers)
JEL-codes: G35 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1062976914000799
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:56:y:2015:i:c:p:154-164

DOI: 10.1016/j.qref.2014.09.011

Access Statistics for this article

The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty

More articles in The Quarterly Review of Economics and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().