The Information Content of Common Stock Repurchases: An Empirical Study1
作者:
Daniel Oyon,
Constantinos C. Markides,
Christopher D. Ittner,
期刊:
British Journal of Management
(WILEY Available online 1994)
卷期:
Volume 5,
issue 1
页码: 65-75
ISSN:1045-3172
年代: 1994
DOI:10.1111/j.1467-8551.1994.tb00131.x
出版商: Blackwell Publishing Ltd
数据来源: WILEY
摘要:
SUMMARYShare 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 thelevelof future cash flows but also about changes in theriskinessof these cash flows.
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