The Information Content of Common Stock Repurchases: an Empirical Study

Détails

ID Serval
serval:BIB_6FFBC923E3E9
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
The Information Content of Common Stock Repurchases: an Empirical Study
Périodique
British Journal of Management
Auteur⸱e⸱s
Oyon D., Constantinos C, Markides C., Ittner C.
ISSN
1045-3172
Statut éditorial
Publié
Date de publication
12/1994
Peer-reviewed
Oui
Volume
5
Numéro
Issue Supplement
Pages
65-75
Langue
anglais
Résumé
Share repurchase announcements are known to be associated with significant positive abnormal stock returns. Past studies have argued that the main explanation of this value creation is that share repurchases signal new (and favourable) information about the repurchasing firms' future cash flows. This paper examines this hypothesis and provides evidence on the nature of the information revealed by share repurchases. Using a sample of 41 repurchase announcements from the USA, we show that the new information signalled to the stock market through share repurchasing is not only about changes in the level of future cash flows but also about changes in the riskiness of these cash flows.
Création de la notice
26/05/2010 22:27
Dernière modification de la notice
20/08/2019 14:28
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