EU regulation and open market share repurchases: New evidence

Angeliki Drousia, Athanasios Episcopos, George Leledakis and Emmanuil Pyrgiotakis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper re-examines the impact of the EU Market Abuse Directive (MAD) on the market reaction around share repurchase announcements. We use a unique hand-collected dataset of firms listed on the Athens Stock Exchange, and we find evidence that contrasts with previous conclusions for large European economies. The implementation of MAD is followed by a significant improvement in announcement abnormal returns, an improvement which remains even when we control for several firm-specific factors, industry fixed effects, and potential endogeneity issues. We attribute our findings to cross-country differences in institutional framework and pre-MAD existing national laws. Collectively, our results support the notion that EU directives do not have a uniform effect across Member States. Thus, the impact of such reforms should also be examined in individual capital market studies.

Keywords: Share repurchases; Market Abuse Directive; safe harbor; signaling undervaluation. (search for similar items in EconPapers)
JEL-codes: G14 G15 G35 G38 (search for similar items in EconPapers)
Date: 2020-06-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/102023/1/MPRA_paper_102023.pdf original version (application/pdf)

Related works:
Journal Article: EU Regulation and open market share repurchases: new evidence (2023)
Working Paper: EU regulation and open market share repurchases: New evidence (2021)
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:pra:mprapa:102023

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).