Network Centrality and Managerial Market Timing Ability: Evidence from Open-Market Repurchase Announcements

2016 ◽  
Author(s):  
Theodoros Evgeniou ◽  
Theo Vermaelen ◽  
Ling Yue
Keyword(s):  
Market Timing ◽  
Network Centrality ◽  
Open Market ◽  
Timing Ability ◽  
Repurchase Announcements

scholarly journals The Announcement Effect of Open-Market Share Buybacks: The Case for European Firms

2018 ◽  
Vol 10 (8) ◽  
pp. 117
Author(s):  
Jyoti Gupta ◽  
Florian Wagner
Keyword(s):  
Capital Structure ◽  
Abnormal Return ◽  
Market Timing ◽  
Structure Optimization ◽  
Share Price ◽  
Open Market ◽  
Timing Ability ◽  
Announcement Returns ◽  
Positive Abnormal Return ◽  
Book Values

Using a comprehensive sample of 1830 open-market repurchases of 15 European countries encompassing the period from 1998 until 2013, we analyzed the magnitude and determinants of the share price reaction on announcement. Our results indicate that buyback announcements in Europe lead on average to a significantly positive abnormal return of 0.92% on announcement day, however, decreasing in firm size and announcement frequency. Additionally, our findings show that the market does not particularly greet the distribution of excess cash to shareholders, but rather when companies take advantage of undervalued stock as market-to-book values are inversely related to announcement returns. Looking at the companies’ leverage ratios, the motive of capital structure optimization cannot be supported by the empirical findings. Lastly, with respect to managerial market timing ability we could not observe that buybacks are following a period of share price underperformance, concluding that managers are not able to time the implementation of buyback programs.

Network Centrality and Managerial Market Timing Ability

2021 ◽  
pp. 1-91
Author(s):  
Theodoros Evgeniou ◽  
Joel Peress ◽  
Theo Vermaelen ◽  
Ling Yue
Keyword(s):  
Market Timing ◽  
Network Centrality ◽  
Timing Ability

Market Timing Ability of Indian Firms in Open Market Repurchases

2013 ◽  
Author(s):  
Sobhesh Kumar Agarwalla ◽  
Joshy Jacob ◽  
Ellapulli V Vasudevan
Keyword(s):  
Market Timing ◽  
Open Market ◽  
Timing Ability

Correcting for Heteroscedasticity in Tests for Market Timing Ability

1986 ◽  
Vol 59 (4) ◽  
pp. 585 ◽  
Author(s):  
William Breen ◽  
Ravi Jagannathan ◽  
Aharon R. Ofer
Keyword(s):  
Market Timing ◽  
Timing Ability

A Study on Stock-Selection and Market-Timing Performance: Evidence from Hong Kong Mandatory Provident Funds (MPF)

2008 ◽  
Vol 11 (04) ◽  
pp. 617-649 ◽  
Author(s):  
Patrick Kuok-kun Chu ◽  
Michael McKenzie
Keyword(s):  
Hong Kong ◽  
Economic Condition ◽  
Market Timing ◽  
Stock Selection ◽  
Timing Ability ◽  
Conditional Models ◽  
Equity Funds ◽  
The Individual ◽  
Timing Models ◽  
Comprehensive Study

This paper presents the first comprehensive study of the performance and market timing ability of the equity funds that comprise the Hong Kong Mandatory Provident Funds (MPF) scheme. In general, our results suggest that US equity funds consistently underperform relative to the market, while the other fund groups consistently outperform the market. The stock-selection ability of MPF constituent equity funds in times of changing economic condition is also investigated. The evidence is consistent with previous studies, which suggest that the conditional models decrease the individual fund traditional alpha measure. The market timing models of Treynor–Mazuy and Henriksson–Merton provide evidence of superior market timing ability.

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