scholarly journals Stock Repurchases: A Theoretical Prediction Model

2011 ◽  
Vol 9 (3) ◽  
Author(s):  
Craig Santicola
Keyword(s):  
Theoretical Prediction ◽  
Prediction Model ◽  
Payout Policy ◽  
Stock Repurchases ◽  
Estimation Model ◽  
Stock Repurchase ◽  
Long Run ◽  
History Of ◽  
Repurchase Programs

There has been a shift in payout policy over the last 15 years with firms opting to conduct stock repurchases over paying dividends. As repurchases have grown so has the corresponding research. Of particular note are findings that identify factors contributing to a firms buyback decision and as well as those that support the existence of long-run return anomalies. While several notable researchers have reported the prevalence and persistence of stock repurchase anomalies, this paper examines the history of repurchase theory and presents a theoretical repurchase prediction model. Using variables shown in the literature to have influence on the decision to repurchase stock, a probit estimation model is developed as a means to identify firms likely to conduct repurchase programs.

scholarly journals Incomplete Share Repurchase Programs in Vietnam: Completion Rates and Short-Term Returns

2020 ◽  
Vol 8 (3) ◽  
pp. 57
Author(s):  
Kien Cao ◽  
Thuy Nguyen ◽  
Hong Nguyen ◽  
Hien Bui
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Prices ◽  
Management Practices ◽  
Investor Protection ◽  
Stock Repurchases ◽  
Tobit Regression ◽  
Stock Repurchase ◽  
The Impact ◽  
Repurchase Programs

Stock repurchases have become a preferred method of distributing cash to stockholders. However, given the high level of information asymmetry and weak corporate governance as well as poor investor protection in Vietnam, many Vietnamese firms use stock repurchases as a tool to manipulate stock prices in the market. Using event study methodology and Tobit regression models, this study examines the stock price behaviors surrounding the event dates and the impact of earnings management activities prior to the stock repurchases on the completion of repurchase announcements in Vietnam. The results show that earnings management practices prior to stock repurchase programs, the percentage of intended buyback shares, and CEO characteristics have a significant impact on the completion of these repurchase programs. Moreover, most of the windows surrounding the event dates do not have any significant abnormal movement of the stock prices. A plausible explanation is that, due to weak corporate governance and poor investor protection, Vietnamese firms send lots of misleading signals through various corporate activities, especially stock repurchase programs. Thus, these signals have less meaning to investors.

Dividends versus Stock Repurchases and Long-Run Stock Returns under Heterogeneous Beliefs

2021 ◽  
Author(s):  
Onur Bayar ◽  
Thomas J Chemmanur ◽  
Mark H Liu
Keyword(s):  
Stock Returns ◽  
Project Success ◽  
Heterogeneous Beliefs ◽  
Stock Repurchases ◽  
External Financing ◽  
Stock Repurchase ◽  
Dividend Payment ◽  
Long Run

Abstract We analyze a firm’s choice between dividends and stock repurchases under heterogeneous beliefs. Firm insiders, owning a certain fraction of equity, choose between paying out cash available through a dividend payment or a stock repurchase, and simultaneously choose the scale of the firm’s project. Outsiders have heterogeneous beliefs about project success and may disagree with insiders. In equilibrium, the firm distributes value through dividends alone, through a repurchase alone, or through a combination of both. In some situations, the firm may raise external financing to fund its payout. We also develop results for long-run stock returns following dividends and repurchases.

scholarly journals A Survey Of Stock Repurchase Motivations And Practices Of Major U.S. Corporations

2011 ◽  
Vol 7 (3) ◽  
pp. 15 ◽  
Author(s):  
George P. Tsetsekos ◽  
Daniel J. Kaufman, Jr. ◽  
Lawrence J. Gitman
Keyword(s):  
Capital Structure ◽  
Empirical Research ◽  
Questionnaire Survey ◽  
Investment Decisions ◽  
Stock Repurchases ◽  
Mail Questionnaire ◽  
Stock Repurchase ◽  
Signaling Hypothesis ◽  
Repurchase Programs ◽  
The Capital Structure

This study reports the findings of a comprehensive mail questionnaire survey of the stock repurchase programs of major U.S. corporations. Emphasis is placed on understanding the precipitating circumstances and motivations leading to stock repurchases. Contrary to recent studies, it appears that stock repurchases are viewed as financing rather than investment decisions. While the desire to change the capital structure was the most frequently expressed motivation, a majority of the responses were consistent with the signaling hypothesis. This fining suggests that signaling may indeed be as important as suggested by prior theoretical and empirical research.

Chiari Malformation Presenting in Adults: A Surgical Experience in 127 Cases

Neurosurgery ◽  
1983 ◽  
Vol 12 (4) ◽  
pp. 377-390 ◽  
Author(s):  
Walter Joseph Levy ◽  
Laura Mason ◽  
Joseph F. Hahn
Keyword(s):  
Chiari Malformation ◽  
Complex Disease ◽  
Pathological Condition ◽  
Disease Process ◽  
Central Canal ◽  
Surgical Anatomy ◽  
Long Run ◽  
Long Term Follow Up ◽  
History Of

Abstract We reviewed 127 patients who were operated upon for adult presentation Chiari malformation and made six conclusions: (a) The clinical examination remains crucial in the diagnosis. (b) The surgical anatomy is highly varied. (c) Syrinxes can be missed on preoperative contrast studies. (d By a conservative grading system, we determined that 46%; of the patients improved during long term follow-up. One-quarter deteriorated over the long run in spite of any treatment. (e) The overall results did not differ whether the treatment was plugging of the central canal plus decompression or decompression alone. (f) In patients with progression, plugging of the central canal obtained superior results. A review of the literature shows that the natural history of this complex disease process has not been established. This history is needed to identify the course of what may be several important factors that lead to the pathological condition in this disease.

scholarly journals Between communism and capitalism: long-term inequality in Poland, 1892–2015

2021 ◽  
Author(s):  
Paweł Bukowski ◽  
Filip Novokmet
Keyword(s):  
Household Survey ◽  
National Accounts ◽  
Capital Income ◽  
Sharp Rise ◽  
Long Run ◽  
History Of ◽  
Low Levels ◽  
Distribution Of Income

AbstractWe construct the first consistent series on the long-term distribution of income in Poland by combining tax, household survey and national accounts data. We document a U-shaped evolution of inequalities from the end of the nineteenth century until today: (1) inequality was high before WWII; (2) abruptly fell after the introduction of communism in 1947 and stagnated at low levels during the whole communist period; (3) experienced a sharp rise with the return to capitalism in 1989. We find that official survey-based measures strongly under-estimate the rise in inequality since 1989. Our results highlight the prominent role of capital income in driving the U-shaped evolution of top income shares. The unique inequality history of Poland speaks to the central role of institutions and policies in shaping inequality in the long run.

Changes in Market Response to Stock Repurchases during the COVID-19 Crisis

2021 ◽  
Vol 50 (4) ◽  
pp. 411-437
Author(s):  
Kyung Hee Park
Keyword(s):  
Stock Prices ◽  
Market Reaction ◽  
Listed Companies ◽  
Shareholder Wealth ◽  
Stock Repurchases ◽  
Market Response ◽  
Stock Repurchase ◽  
South Korean ◽  
The Impact ◽  
A Company

This study analyzed the impact of COVID-19, which, in 2020, globally increased uncertainty about the stock repurchase of South Korean listed companies. The results suggest that the market reaction to stock repurchases during the COVID-19 period was significantly subdued. In particular, the market reaction to KOSPI companies, on stock repurchase, was positive, while it was negative in the case of KOSDAQ companies. It has also been reported that the market ranks lower on the reliability of the signal after the onset of COVID-19. This means that if a company discloses a stock repurchase in a situation where the value of the market as a whole has declined, it cannot be accepted as an undervalued signal. Furthermore, it was revealed that the market responded more positively to the announcement of repurchases by companies that had actively managed shareholder wealth by repeatedly making stock repurchases before COVID-19. These results suggest that companies should always be aware of this, as the market response to stock repurchases in market shockers such as COVID-19 is weaker. Additionally, managers can manage their stock prices more effectively through stock repurchases during market shockers if they consistently manage their stock prices through stock repurchases when companies are undervalued.

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