haku: @journal_id 33 / yhteensä: 575
viite: 54 / 575
Tekijä: | McNally, W. |
Otsikko: | Open market stock repurchase signaling |
Lehti: | Financial Management
1999 : SUMMER, VOL. 28:2, p. 55-67 |
Asiasana: | FINANCIAL MANAGEMENT STOCK MARKETS ECONOMICS |
Kieli: | eng |
Tiivistelmä: | This paper presents a signaling model of open market repurchases that simulates the effects of a repurchase on the inside shareholders' utility. If insiders refrain from tendering, then they are exposed to more risk. If insiders are risk averse, then their choice of the repurchase proportion will reveal much to the market: 1) firms that repurchase more have higher earnings; 2) riskier firms have higher earnings; 3) firms where insiders have a greater ownership stake have higher earnings, ceteris paribus. The author tests the model implications with a sample of over 700 US repurchases and finds support for all three hypotheses. |
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