Abstract
Original language | English |
---|---|
Pages (from-to) | 1023-1050 |
Number of pages | 28 |
Journal | Journal of Corporate Finance |
Volume | 18 |
Issue number | 5 |
DOIs | |
Publication status | Published - Dec 2012 |
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Keywords
- open market repurchase
- timing
- ownership
- liquidity
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The effects of ownership and stock liquidity on the timing of repurchase transactions. / De Cesari, Amedeo; Espenlaub, Susanne; Khurshed, Arif; Simkovic, Michael.
In: Journal of Corporate Finance, Vol. 18, No. 5, 12.2012, p. 1023-1050.Research output: Contribution to journal › Article
TY - JOUR
T1 - The effects of ownership and stock liquidity on the timing of repurchase transactions
AU - De Cesari, Amedeo
AU - Espenlaub, Susanne
AU - Khurshed, Arif
AU - Simkovic, Michael
N1 - Copyright 2012 Elsevier B.V., All rights reserved.
PY - 2012/12
Y1 - 2012/12
N2 - We analyze detailed monthly data on U.S. open market stock repurchases (OMRs) that recently became available following stricter disclosure requirements. We find evidence that OMRs are timed to benefit non-selling shareholders. We present evidence that the profits to companies from timing repurchases are significantly related to ownership structure. Institutional ownership reduces companies' opportunities to repurchase stock at bargain prices. At low levels, insider ownership increases timing profits and at high levels it reduces them. Stock liquidity increases profits from timing OMRs.
AB - We analyze detailed monthly data on U.S. open market stock repurchases (OMRs) that recently became available following stricter disclosure requirements. We find evidence that OMRs are timed to benefit non-selling shareholders. We present evidence that the profits to companies from timing repurchases are significantly related to ownership structure. Institutional ownership reduces companies' opportunities to repurchase stock at bargain prices. At low levels, insider ownership increases timing profits and at high levels it reduces them. Stock liquidity increases profits from timing OMRs.
KW - open market repurchase
KW - timing
KW - ownership
KW - liquidity
UR - http://www.scopus.com/inward/record.url?scp=84864331614&partnerID=8YFLogxK
U2 - 10.1016/j.jcorpfin.2012.06.004
DO - 10.1016/j.jcorpfin.2012.06.004
M3 - Article
AN - SCOPUS:84864331614
VL - 18
SP - 1023
EP - 1050
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
SN - 0929-1199
IS - 5
ER -