EconPapers    
Economics at your fingertips  
 

THE CAPITAL and CASH FLOW SOURCES and USES of INITIAL STOCK REPURCHASE FIRMS

Luís Pacheco () and Clara Raposo ()

No 7, Working Papers de Gestão (Management Working Papers) from Católica Porto Business School, Universidade Católica Portuguesa

Abstract: This study investigates the capital sources and uses of firms that are conducting stock repurchase transactions for the first time, both prior and subsequent to those financial operations. We hypothesize that this capital and cash flow analysis may shed some light about the relative importance of some financial motivations and theoretical hypotheses in explaining initial stock repurchases. In particular, our findings support the risk reduction signaling and the dividends substitution hypotheses as the primary drivers for the initial stock repurchase decision. We also find that the importance of the most theoretical explanations and financial motivations vary according to whether initial repurchase firms are also conducting acquisitions and significant divestitures, distributing cash dividends, relying on external financing and using debt or cash reserves.

Keywords: Stock Repurchases, Initial Stock Repurchases; Sources of Financing; Cash Flow Distribution. (search for similar items in EconPapers)
JEL-codes: G32 G35 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2009-02
New Economics Papers: this item is included in nep-cfn
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.feg.porto.ucp.pt/docentes/repec/WP/0720 ... PURCHASE%20FIRMS.pdf First version (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.feg.porto.ucp.pt:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

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:cap:mpaper:072009

Access Statistics for this paper

More papers in Working Papers de Gestão (Management Working Papers) from Católica Porto Business School, Universidade Católica Portuguesa Contact information at EDIRC.
Bibliographic data for series maintained by Ricardo Goncalves ().

 
Page updated 2025-01-21
Handle: RePEc:cap:mpaper:072009