Patriotic Stock Repurchases: The Two Weeks Following the 9-11 Attack

Anthony Yanxiang Gu and Michael Schinski

Review of Quantitative Finance and Accounting, 2003, vol. 20, issue 3, 267-76

Abstract: The September 11, 2001 terrorist attacks created a unique situation where patriotism became a significant motive for companies to make stock buyback announcements. Officials from the stock markets and the SEC encouraged stock repurchase announcements to help stabilize the markets. However, some analysts questioned the wisdom of repurchase announcements at this time of economic uncertainty, given that buybacks reduce the firm's cash and equity. This study finds that announcements made during the two weeks following the attacks had a positive effect on a firm's stock price. It was also found that the earlier the announcement following the attacks, generally the more positive the market response. This suggests the possibility of a "patriotism effect" where the firms most eager to show their patriotism were rewarded by patriotic investors. Copyright 2003 by Kluwer Academic Publishers

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://journals.kluweronline.com/issn/0924-865X/contents link to full text (text/html)
Access to full text is restricted to subscribers.

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:kap:rqfnac:v:20:y:2003:i:3:p:267-76

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/11156/PS2

Access Statistics for this article

Review of Quantitative Finance and Accounting is currently edited by Cheng-Few Lee

More articles in Review of Quantitative Finance and Accounting from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().