search query: @indexterm Tender offers / total: 102
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| Author: | Comment, R. Jarrell, G.A. |
| Title: | The relative signalling power of Dutch- auction and fixed-price self-tender offers and open-market share repurchases |
| Journal: | Journal of Finance
1991 : SEP, VOL. 46:4, p. 1243-1271 |
| Index terms: | TENDER OFFERS STOCK MARKETS NETHERLANDS SHARE PRICES |
| Language: | eng |
| Abstract: | Three forms of common stock repurchases are compared. Dutch-auction self-tender offers and open-market share repurchase programs are weaker signals of stock undervaluation than fixed-price self-tender offers. The price increase from buyback announcements is greater when insider wealth is at risk, greater following negative net-of-market stock returns, and unrelated to prior market returns. Buyback announcement returns are also increasing in the fraction of shares sought, which is consistent with both signalling and an upward-sloping supply curve for stock. |
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