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 paperWorking 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 languageEnglish
Place of PublicationBirmingham
PublisherAston University
ISBN (Print)9781854497543
Publication statusPublished - Jul 2009

Bibliographical note

0914

Keywords

  • repurchase
  • volatility
  • liquidity
  • bid-ask spread
  • variance

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