The Impact of Open-Market Share Repurchases on Long-Term Stock Returns: Evidence from the Taiwanese Market

2012 ◽  
Vol 48 (sup2) ◽  
pp. 200-229 ◽  
Author(s):  
Nai-Hui Su ◽  
Chan-Jane Lin
Keyword(s):  
Stock Returns ◽  
Market Share ◽  
Share Repurchases ◽  
Open Market ◽  
The Impact ◽  
Open Market Share Repurchases

scholarly journals Open Market Share Repurchases and Earnings Management

2020 ◽  
Vol 15 (1) ◽  
pp. 31
Author(s):  
Arturo Rodríguez ◽  
Heng Yue
Keyword(s):  
Earnings Management ◽  
Market Share ◽  
Discretionary Accruals ◽  
Significant Part ◽  
Share Repurchases ◽  
Open Market ◽  
Managerial Opportunism ◽  
Repurchase Announcements ◽  
Open Market Share Repurchases

In this study we examine earnings management around open market share repurchases. We examine two hypotheses: managerial opportunism and market response, both of which predict that managers will manage earnings down prior to an open market repurchase. Using 2,939 repurchase announcements during 1980- 1998 we find evidence that managers do manage earnings down before share repurchases. We also find that the market does not identify the earnings manipulation when the repurchase is announced, and that discretionary accruals can explain a significant part of long-term positive returns following repurchases. Altogether the evidence is consistent with the managerial opportunism hypothesis. Further investigation indicates that managers with higher ownership in the firm are more likely to manage earnings down.

scholarly journals EU Regulation and open market share repurchases: new evidence

2021 ◽  
pp. 1-21
Author(s):  
Angeliki Drousia ◽  
Athanasios Episcopos ◽  
George N. Leledakis ◽  
Emmanouil G. Pyrgiotakis
Keyword(s):  
Market Share ◽  
Share Repurchases ◽  
Open Market ◽  
Eu Regulation ◽  
New Evidence ◽  
Open Market Share Repurchases

scholarly journals Impact of Open-Market Share Repurchases on Long-Term Stock Returns

SAGE Open ◽  
2016 ◽  
Vol 6 (4) ◽  
pp. 215824401667019 ◽  
Author(s):  
Mohamed Albaity ◽  
Diana Syafiza Said
Keyword(s):  
Stock Returns ◽  
Abnormal Returns ◽  
Sampling Period ◽  
Share Repurchases ◽  
Open Market ◽  
Calendar Time ◽  
Price Performance ◽  
Long Run ◽  
Portfolio Approach

After the Asian financial crisis in 1997, firms listed on Bursa Malaysia were allowed to repurchase their shares on the open market. The number of companies engaged in share buyback is increasing and has become a tool to stabilize price by signaling undervaluation of the share. However, studies on share buyback in Malaysia are limited to the price performance surrounding the buyback events. This study aims to fill this gap by examining long-run price performance after the actual share buyback event over a sampling period of 2 years from 2009 to 2010 for Malaysian firms listed on FTSE Bursa Malaysia. There is no evidence to conclude that there exist long-term abnormal returns using the calendar-time portfolio approach that support the inefficient market hypothesis. On the contrary, buy-and-hold method was found to be significant supporting that the Malaysian stock market is semi-strong efficient.

Sign in / Sign up

Export Citation Format

Share Document