DO MARKETS LEARN? INSTITUTIONAL VS. MARKET LEARNING PERSPECTIVES ON THE CONSEQUENCES OF STOCK REPURCHASE PROGRAMS.

2002 ◽  
Vol 2002 (1) ◽  
pp. 1-6 ◽  
Author(s):  
EDWARD J. ZAJAC ◽  
JAMES D. WESTPHAL
Keyword(s):  
Stock Repurchase ◽  
Repurchase Programs ◽  
Market Learning

MANAGEMENT'S VIEW OF STOCK REPURCHASE PROGRAMS

1981 ◽  
Vol 4 (3) ◽  
pp. 233-247 ◽  
Author(s):  
H. Kent Baker ◽  
Patricia L. Gallagher ◽  
Karen E. Morgan
Keyword(s):  
Stock Repurchase ◽  
Repurchase Programs

scholarly journals Incomplete Share Repurchase Programs in Vietnam: Completion Rates and Short-Term Returns

2020 ◽  
Vol 8 (3) ◽  
pp. 57
Author(s):  
Kien Cao ◽  
Thuy Nguyen ◽  
Hong Nguyen ◽  
Hien Bui
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Prices ◽  
Management Practices ◽  
Investor Protection ◽  
Stock Repurchases ◽  
Tobit Regression ◽  
Stock Repurchase ◽  
The Impact ◽  
Repurchase Programs

Stock repurchases have become a preferred method of distributing cash to stockholders. However, given the high level of information asymmetry and weak corporate governance as well as poor investor protection in Vietnam, many Vietnamese firms use stock repurchases as a tool to manipulate stock prices in the market. Using event study methodology and Tobit regression models, this study examines the stock price behaviors surrounding the event dates and the impact of earnings management activities prior to the stock repurchases on the completion of repurchase announcements in Vietnam. The results show that earnings management practices prior to stock repurchase programs, the percentage of intended buyback shares, and CEO characteristics have a significant impact on the completion of these repurchase programs. Moreover, most of the windows surrounding the event dates do not have any significant abnormal movement of the stock prices. A plausible explanation is that, due to weak corporate governance and poor investor protection, Vietnamese firms send lots of misleading signals through various corporate activities, especially stock repurchase programs. Thus, these signals have less meaning to investors.

scholarly journals Decoupling Policy from Practice: The Case of Stock Repurchase Programs

2001 ◽  
Vol 46 (2) ◽  
pp. 202 ◽  
Author(s):  
James D. Westphal ◽  
Edward J. Zajac
Keyword(s):  
Stock Repurchase ◽  
Repurchase Programs

scholarly journals Does the type of ownership control matter: Evidence from share repurchases programs

2009 ◽  
Vol 6 (3) ◽  
pp. 164-176
Author(s):  
Foued Hamouda
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Ownership Structure ◽  
Share Repurchases ◽  
Primary Result ◽  
Stock Repurchase ◽  
One Year ◽  
Repurchase Programs ◽  
Ownership Control

In this study, we examine effect of stock repurchase programs on firm performance and the importance of the ownership structure in explaining this relationship. The primary result shows that higher levels of repurchases in one year are associated with higher level of performance in the subsequent year. This finding is robust to different ownership structure. Besides, the finding that higher level of repurchases are followed by better financial performance in closely held firm could reflect manager‟s desire to signal undervaluation of stock. However, in the widely held firm the result are not consistent with the signalling hypothesis.

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