The Information Content of Managerial Stock Ownership and Open-Market Share Repurchase Announcements

2007 ◽  
Author(s):  
Ilona Babenko ◽  
Alexander Vedrashko
Keyword(s):  
Information Content ◽  
Market Share ◽  
Stock Ownership ◽  
Share Repurchase ◽  
Open Market ◽  
Repurchase Announcements

Does Share Repurchase Announcement Lead to Rise in Share Price? Evidence from India

2019 ◽  
Vol 20 (2) ◽  
pp. 420-433
Author(s):  
Paramita Mukherjee ◽  
Chanchal Chatterjee
Keyword(s):  
Stock Returns ◽  
Market Share ◽  
Share Price ◽  
Share Repurchase ◽  
Open Market ◽  
Individual Basis ◽  
Increasing Trend ◽  
Excess Stock Returns ◽  
Repurchase Announcements

In recent years, there is an increasing trend of share repurchase announcement by Indian firms. This article attempts to examine whether open market share repurchase announcements in India lead to excess stock returns and to identify the factors responsible for additional stock returns. Apart from a standard market method, the price behaviour is examined on an individual basis. The results show that the firms, on an average, do not experience price improvement after share repurchase. While 24 per cent of the firms lose and 10 per cent gain, the rest experience no change. In normal times, investors prefer small-cap companies, but post-announcement, promoters’ share and premium play an important role.

Insider Trading and Firm Performance Following Open Market Share Repurchase Announcements

2014 ◽  
Vol 41 (1-2) ◽  
pp. 156-184 ◽  
Author(s):  
Hsuan-Chi Chen ◽  
Sheng-Syan Chen ◽  
Chia-Wei Huang ◽  
John D. Schatzberg
Keyword(s):  
Firm Performance ◽  
Market Share ◽  
Insider Trading ◽  
Share Repurchase ◽  
Open Market ◽  
Repurchase Announcements

The Credibility of Open Market Share Repurchase Signaling

2012 ◽  
Vol 47 (5) ◽  
pp. 1059-1088 ◽  
Author(s):  
Ilona Babenko ◽  
Yuri Tserlukevich ◽  
Alexander Vedrashko
Keyword(s):  
Stock Returns ◽  
Market Share ◽  
Firm Value ◽  
Share Repurchase ◽  
Open Market ◽  
Announcement Returns ◽  
Repurchase Announcements

AbstractOpen market share repurchase announcements are commonly associated with equity undervaluation, but their signal about firm value can often be misleading. We conjecture that executives who buy shares of their firm before an announcement add credibility to the undervaluation signal. Consistent with this hypothesis, we find that announcement returns are positively related to past insider purchases, especially for firms that are priced less efficiently. Firms whose insiders bought more shares are also more likely to complete their repurchase plans. Finally, we find that insider purchases predict post-announcement stock returns.

scholarly journals Market underreaction to open market share repurchases on the JSE

2014 ◽  
Vol 45 (4) ◽  
pp. 59-69 ◽  
Author(s):  
N. Wesson ◽  
C. Muller ◽  
M. Ward
Keyword(s):  
South African ◽  
Market Share ◽  
Abnormal Returns ◽  
Share Repurchases ◽  
Share Repurchase ◽  
Open Market ◽  
Repurchase Announcements ◽  
Long Term Performance ◽  
Term Performance

This study examined the long-term performance of open market share repurchase announcements made by companies listed on the JSE during their reporting periods including 1 July 1999 to 2009. A total of 195 open market share repurchase announcements were identified. A maximum outperformance of about 35% was found on day t+550 (about two years subsequent to the announcement). After splitting the sample into 'value' (low P/E ratio) and 'growth' shares (high P/E ratio), it was found that the outperformance was almost entirely confined to the value portfolio, reaching a maximum of about 80% by day t+630 (about two-and-a-halfyears subsequent to the announcement). This study applied a more robust research methodology than used in earlier South African research on this topic; it also used an improveddataset and extended the research period, compared to other research. The results of this study showed much higher positive abnormal returns than were found in earlier international and South African studies. Investors should takeadvantage of the informational value of open market repurchase announcements and the related significant abnormal returns to be earned.

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