Stock repurchases and treasury share sales: Do they stabilize price and enhance liquidity?

Amedeo De Cesari; Susanne Espenlaub; Arif Khurshed

Stock repurchases and treasury share sales: Do they stabilize price and enhance liquidity?

Amedeo De Cesari, Susanne Espenlaub, Arif Khurshed

Research output: Preprint or Working paper › Working paper

Abstract

The article studies the impact of a firm’s trading in its own shares on the volatility and market liquidity of the firm’s stock in the Italian stock market. In the study, both stock repurchases and treasury share sales executed on the open market are defined as trading in own shares. The study finds that Italian firms can reduce the volatility of their stock and boost market liquidity by trading their own shares.

Original language	English
Place of Publication	Birmingham
Publisher	Aston University
ISBN (Print)	9781854497543
Publication status	Published - Jul 2009

Bibliographical note

0914

Keywords

repurchase
volatility
liquidity
bid-ask spread
variance

Cite this

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title = "Stock repurchases and treasury share sales: Do they stabilize price and enhance liquidity?",

abstract = "The article studies the impact of a firm{\textquoteright}s trading in its own shares on the volatility and market liquidity of the firm{\textquoteright}s stock in the Italian stock market. In the study, both stock repurchases and treasury share sales executed on the open market are defined as trading in own shares. The study finds that Italian firms can reduce the volatility of their stock and boost market liquidity by trading their own shares.",

keywords = "repurchase, volatility, liquidity, bid-ask spread, variance",

author = "{De Cesari}, Amedeo and Susanne Espenlaub and Arif Khurshed",

note = "0914",

year = "2009",

month = jul,

language = "English",

isbn = "9781854497543",

publisher = "Aston University",