search query: @author Oyon, D. / total: 6
reference: 5 / 6
| Author: | Oyon, D. Markides, C. Ittner, C. |
| Title: | The information content of common stock repuchases: an empirical study |
| Journal: | British Journal of Management
1994 : JUN, VOL. 5:S, p. S65-S75 |
| Index terms: | INFORMATION STOCK REPURCHASES MANAGEMENT |
| Language: | eng |
| Abstract: | Share repurchase announcements are known to be associated with significant positive abnormal stock returns. Past studies have argued that the main explanation of this value creation is that share repurchases signal new information about the repurchasing firms' future cash flow. This paper examines this hypothesis and provides evidence on the nature of the information revealed by share repurchases. Using a sample of 41 repurchase announcements from the USA, the authors show that the new information signalled to the stock market through share repurchasing is not only about changes in the level of future cash flows but also about changes in the riskiness of these cash flows. |
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