Institutional investment horizons and open-market stock repurchases: evidence from the Taiwan stock market

2012 ◽  
Vol 22 (8) ◽  
pp. 611-623 ◽  
Author(s):  
Lee-Young Cheng ◽  
Yu-En Lin
Keyword(s):  
Stock Market ◽  
Stock Repurchases ◽  
Open Market ◽  
Institutional Investment

Open Market Stock Repurchases at Bovespa

2001 ◽  
Author(s):  
Luis Fernando Moreira ◽  
Jairo Laser Procianoy
Keyword(s):  
Stock Repurchases ◽  
Open Market

The Effect of Unsuccessful Past Repurchases on Future Repurchasing Decisions

2021 ◽  
Author(s):  
Geoffrey C. Friesen ◽  
Noel Pavel Jeutang ◽  
Emre Unlu
Keyword(s):  
Stock Market ◽  
Negative Impact ◽  
Career Concerns ◽  
Stock Repurchases ◽  
Negative Outcomes ◽  
Effect Factors ◽  
Lifetime Experience ◽  
Idiosyncratic Shocks ◽  
Robust Evidence

We find that managers are less likely to repurchase stocks when they lose money on past stock repurchases but find no robust evidence that past gains on repurchases influence future repurchasing activity. This asymmetric sensitivity is strongest for young CEOs and those with the shortest tenure. Also, future repurchases are more sensitive to past repurchase losses for CEOs whose previous lifetime experience with the stock market is unfavorable. The sensitivity of future repurchases to past losses costs firms, on average, about 3.7% per year. When this cost is decomposed into systematic and idiosyncratic components, we find that nearly half (1.8%) comes from mistiming idiosyncratic shocks. Past losses on repurchases have a significant and negative impact on the CEO’s future bonus and increase the likelihood that future CEO termination is involuntary. We also find that negative outcomes from past repurchases encourage the subsequent use of dividends. Our findings suggest that outcomes of past repurchases have economically significant consequences through both nonbehavioral (career concerns) and behavioral (snakebite effect) factors. This paper was accepted by Tyler Shumway, finance.

Impact of the OMRR Operation in Fighting the Adverse Effects of COVID-19 on the Chinese Stock Market: An Event Study

2021 ◽  
Vol 16 (3) ◽  
pp. 495-520
Author(s):  
Lin Guo ◽  
◽  
Xufei Zhang ◽  
Songlei Chao ◽  
◽  
...  
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Abnormal Return ◽  
Fiscal Policies ◽  
Chinese Stock Market ◽  
Open Market ◽  
Monetary Policies ◽  
Technology Industry ◽  
The Impact ◽  
China’S Economy

The outbreak of the COVID-19 epidemic has had an adverse effect on China's economy. This paper uses the event study method to test and measure the impact of the open market reverse repo (OMRR) operation on the Chinese stock market. The results show that the OMRR operation generates a positive daily abnormal return and a positive daily cumulative abnormal return on average for all stocks. The impact is larger for non-state-owned enterprise (non-SOE) firms than for SOE firms, stocks of non-Hubei provinces than those of the Hubei province, and for stocks of the information transmission and technology industry than those of other industries. We suggest that our government implement more prudent monetary policies and more proactive fiscal policies.

scholarly journals Short-Term Price Effects of Stock Repurchases in Turkish Capital Markets

2015 ◽  
Vol 7 (12) ◽  
pp. 29 ◽  
Author(s):  
Burak Pirgaip ◽  
Semra Karacaer
Keyword(s):  
Capital Markets ◽  
Stock Prices ◽  
Company Law ◽  
Stock Repurchases ◽  
Open Market ◽  
Short Term ◽  
Stock Repurchase ◽  
Listed Firms ◽  
Commercial Code ◽  
Signaling Hypothesis

Stock repurchase, as a corporate finance tool and a substitute for cash dividends, plays an important role in distributing excess cash. Following a prohibited period due to its potentially negative outcomes for shareholders and creditors, stock repurchase has recently been regulated within the company law systems of many countries pursuant to its increasing popularity in satisfying special financing requirements of companies. That the regulatory improvements have removed the uncertainty inherent in such transactions has increased the volume of, especially, the open market stock repurchases. Turkish legislation, <em>i.e.</em> <em>Commercial Code and Capital Markets Law</em>, has latterly been updated in accordance with EU acquis communautaire in order to allow stock repurchase for listed firms. We analyse movements in stock prices after stock repurchase transactions in order to make inferences about why stock repurchase is used and what its impacts/signals are in Turkish market at their infancy stage. Having followed a standard event study methodology, the results reveal that investor reaction to stock repurchase transactions is generally positive in the short-term. These results support the notion of a signaling hypothesis as a motivator behind stock repurchase decisions.

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