search query: @author Ofer, A. R. / total: 10
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| Author: | Ofer, A. R. Thakor, A. V. |
| Title: | A theory of stock price responses to alternative corporate cash disbursement methods : stock repurchases and dividends. |
| Journal: | Journal of Finance
1987 : JUN, VOL. 42:2, p. 365-394 |
| Index terms: | SHARE PRICES DIVIDENDS EQUILIBRIUM ANALYSIS |
| Language: | eng |
| Abstract: | A model is developed in which managers can signal their firms' true values by using either a dividend or a stock repurchase or both. A number of stylized facts are explained about these cash-disbursement mechanisms, particularly those concerning the relative magnitudes of stock price responses to dividends and repurchases. Most importantly, it is explained why a stock repurchase elicits a significantly higher price response, on average, than a dividend announcement. |
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