Details

Autor(en) / Beteiligte

• De Cesari, Amedeo
• Espenlaub, Susanne
• Khurshed, Arif
• Simkovic, Michael

Titel

The effects of ownership and stock liquidity on the timing of repurchase transactions

Ist Teil von

• Journal of corporate finance (Amsterdam, Netherlands), 2012-12, Vol.18 (5), p.1023-1050

Ort / Verlag

Amsterdam: Elsevier B.V

Erscheinungsjahr

2012

Link zum Volltext

Quelle

Elsevier ScienceDirect Journals Complete

Beschreibungen/Notizen

• 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. ► We study the timing of U.S. open market repurchases. ► We find that repurchases are timed to benefit non-selling shareholders. ► Timing gains are negatively related to institutional ownership. ► There is an inverse u-shaped relation between timing and insider ownership. ► Stock illiquidity reduces timing gains.